Nvidia just made history, becoming the first company ever to cross the $5 trillion market valuation threshold as shares jumped 3% in premarket trading Wednesday. The milestone caps an extraordinary transformation from a gaming chip maker to the crown jewel of the AI revolution, with the stock climbing nearly 50% this year alone.
Nvidia just rewrote the history books. The chip giant became the first company ever to breach the $5 trillion market valuation threshold Wednesday morning, with shares climbing over 3% in premarket trading after a strong 5% rally the previous session.
The extraordinary milestone reflects one of the most dramatic corporate transformations in modern business history. Just a few years ago, Nvidia was primarily known as a gaming chip company. Today, it sits at the epicenter of the artificial intelligence revolution, commanding a market value that dwarfs entire national economies.
The latest surge follows a series of blockbuster announcements from CEO Jensen Huang. Speaking at the recent "Winning the AI Race" Summit in Washington D.C., Huang revealed that Nvidia expects $500 billion in AI chip orders and unveiled plans to build seven new supercomputers for the U.S. government.
"We are at the very beginning of a technology revolution," Ark Invest CEO Cathie Wood told CNBC from Saudi Arabia's Future Investment Initiative, pushing back on AI bubble concerns even as she flagged potential near-term corrections.
The momentum extends beyond chip manufacturing. Nvidia announced Tuesday it's taking a $1 billion stake in Nokia, forming a strategic partnership to develop next-generation 6G cellular technology. The deal signals Nvidia's aggressive expansion beyond its core AI chip business into broader infrastructure markets.
The broader tech rally has been nothing short of spectacular. Apple and Microsoft both crossed the $4 trillion market cap threshold on Tuesday, underscoring how AI-driven optimism is lifting the entire sector to unprecedented heights.
But the euphoria comes with growing skepticism from financial institutions. The International Monetary Fund and Bank of England recently that global stock markets could face trouble if investor appetite for AI technologies suddenly turns sour.
