Nvidia's Historic Ascent: Market Cap Surpasses $5 Trillion, Fueled by Unstoppable Artificial Intelligence Momentum
Nvidia achieved an unprecedented milestone on Wednesday, becoming the first company globally to surpass a market capitalization of $5 trillion. This monumental feat followed a surge of over 3% in its stock price, positioning it ahead of both Microsoft and Apple, whose valuations hovered near $4 trillion each as of Tuesday.
This record-breaking spike was directly catalyzed by statements from CEO Jensen Huang during the company’s Developer Conference (GTC) in Washington. Huang disclosed that Nvidia has secured purchase orders for its AI chips amounting to over $500 billion through the end of 2026, describing this outlook as an “unparalleled financial vision in the history of technology companies.”
Huang emphasized, “We might be the first technology company in history with a clear revenue visibility reaching half a trillion dollars,” referring to confirmed orders for the current Blackwell chips and the upcoming Rubin series scheduled for launch next year.
- Nvidia officially became the world's first company to breach the $5 trillion market capitalization barrier.
- The surge was driven by CEO Jensen Huang's announcement of over $500 billion in AI chip purchase orders through 2026.
- The company is seeing potential renewed engagement with the crucial Chinese market following high-level diplomatic discussions.
- Nvidia is accelerating its domestic manufacturing strategy by commencing full production of Blackwell chips in Arizona.
- Major financial institutions project massive spending on AI infrastructure by cloud giants, solidifying Nvidia’s dominance in the market.
Nvidia's Potential Return to the Chinese Market
Nvidia's gains amplified amid the possibility of expanded engagement with the Chinese market. U.S. President Donald Trump indicated during his tour of Asian nations that he intends to discuss the "Blackwell" chips with Chinese President Xi Jinping during their meeting in Busan, South Korea, describing the chips as the "most advanced in the world" and "ten years ahead of any other chip."
These remarks arrive while U.S. and Chinese restrictions have barred Nvidia from accessing one of its largest markets, leading to its share in China dropping from 95% to virtually zero. Revenue from the Chinese market plummeted to just $2.8 billion in the last quarter, compared to $15.5 billion during the same period the previous year.
The company had previously proposed a plan to share 15% of the revenue from sales of the H20 chip—a version modified to comply with U.S. export regulations—in exchange for export licenses, though this agreement has not yet been officially activated.
Domestic Manufacturing and Investment Expansion
During the conference, Huang announced that the company has commenced full production of Blackwell chips at its new facility in Arizona, aligning with the "reshoring" manufacturing policy advocated by President Trump.
Furthermore, Nvidia unveiled a $1 billion investment in Nokia to develop communication equipment leveraging its chips for 5G and 6G networks. This is coupled with a partnership with Oracle to construct seven Supercomputers for the U.S. Department of Energy, the largest of which will house 100,000 Blackwell AI chips.
Unprecedented Jumps in Valuation
According to estimates from Morgan Stanley, spending by major cloud computing firms—such as Amazon, Google, Microsoft, Meta, and Oracle—on infrastructure is projected to reach $632 billion by 2027. This bolsters the massive demand for Nvidia's chips, which currently dominate approximately 90% of the AI processor market.
Reaching the $5 trillion threshold occurred just three months after Nvidia surpassed the $4 trillion mark in July. This marks an extraordinary upward trajectory: the company reached $1 trillion in valuation in June 2023, $2 trillion in February 2024, and $3 trillion in June 2024, with its shares rising more than 50% since the start of 2025 alone.
An Accelerating Race
The market caps of both Apple and Microsoft crossed the $4 trillion threshold this week. Apple reached this level following robust demand for its iPhone 17 series, while Microsoft surpassed the same benchmark due to expanded investments in OpenAI following its recent restructuring.
With this achievement, Nvidia cements its position at the apex of the global artificial intelligence race, confirming that its chips have become the beating heart of the modern computing revolution, which is actively redrawing the technology power map.
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