🔗 Share this article The Tech Giant Achieves Historic Landmark of Becoming a $5 Trillion Company Nvidia now stands as the pioneering $5tn company, only three months after the Silicon Valley chipmaker first broke through the $4tn market value barrier. By contrast, Nvidia’s value exceeds the GDP of Japan, India, and the UK, according to IMF data. Soon after American exchanges opened on Wednesday, Nvidia’s shares touched $207.86 with 24.3 billion available shares, placing its market capitalization at $5.05 trillion. Ravenous appetite for Nvidia’s chips, seen as the most cutting edge in driving artificial intelligence products and software, is the primary driver that the share value has surged dramatically since early 2023. The wider US stock market has hit multiple record highs recently, buoyed up by expansive investment in AI technology. Major Announcements and Strategic Moves Earlier this week, Nvidia’s Chief Executive, Jensen Huang, revealed $500bn in processor contracts. The company also announced a collaboration with Uber on robotaxis and a $1bn investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming with the US Department of Energy to build seven new advanced computing systems. Recently, Nvidia announced that it will invest $100 billion in an AI research organization as part of a joint effort that will add at least 10 gigawatts of Nvidia AI datacenters to ramp up the computing power for the owner of the AI assistant ChatGPT. This past summer, Huang said Nvidia was discussing a potential new computer chip designed for China with the Trump administration. Donald Trump said aboard his plane that he would speak with the Chinese president, Xi Jinping, about Nvidia’s technology on Thursday. AI Boom and Economic Significance Reaching this milestone highlights the upheaval caused by an artificial intelligence craze that is widely viewed as the most significant change in the tech sector since the Apple co-founder Steve Jobs unveiled the original smartphone nearly two decades back. Apple capitalized on the smartphone’s popularity to emerge as the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. Potential Concerns But there are concerns of a possible AI bubble, with UK central bank representatives earlier this month flagging the growing risk that tech stock prices driven by the artificial intelligence surge could burst. The head of the IMF has raised a similar alarm.