Nvidia Set to Become First Company Worth $5 Trillion Amid AI Surge
SANTA CLARA, Calif., Oct. 29, 2025 — Nvidia (NVDA.O) is poised to open trading above a $5 trillion market capitalization, marking a historic milestone that cements the chipmaker as the undisputed leader of the global artificial intelligence revolution.
Shares of the California-based company rose 2.8% in premarket trading on Wednesday after CEO Jensen Huang revealed $500 billion in new AI chip orders and unveiled plans to build seven supercomputers for the U.S. government.
The announcement triggered another wave of investor enthusiasm, propelling Nvidia’s valuation into uncharted territory and leaving even the biggest members of the “Magnificent Seven” — including Apple, Microsoft, and Alphabet — trailing behind.
“In many ways, everything that could have gone right for the firm has gone right over the last 24 hours,” said Michael Brown, senior research strategist at Pepperstone.
From Gaming Chips to AI Powerhouse
Nvidia’s meteoric rise underscores its transformation from a niche graphics processor manufacturer into the backbone of the global AI industry.
The company hit the $4 trillion mark just three months ago, and its climb to $5 trillion represents one of the fastest value accelerations in corporate history. Analysts say the move reflects investor conviction that AI spending — across cloud computing, data centers, and enterprise applications — will continue to soar through the decade.
Still, the unprecedented growth has sparked warnings from some market watchers about inflated expectations and valuation risk, given Nvidia’s commanding influence over broader equity markets.
The firm’s massive weighting in the S&P 500 (.SPX) and Nasdaq 100 (.NDX) means fluctuations in its stock can ripple through ETFs, pension funds, and global portfolios alike.
Huang’s Bold Bets: $500B Orders, U.S. Supercomputers
At Nvidia’s developer conference in Washington, Huang announced the company had received half a trillion dollars in AI chip commitments from customers worldwide and would collaborate with the U.S. government on seven next-generation AI supercomputers.
One of the flagship systems — built in partnership with Oracle (ORCL.N) — will contain 100,000 Nvidia Blackwell GPUs, the firm’s most powerful AI chips yet.
Huang described the move as part of Nvidia’s mission to “accelerate the world’s transition to the AI era.”
Geopolitical Spotlight: Nvidia as a U.S.-China Bargaining Chip
Nvidia’s dominance in AI hardware has made it both a strategic asset and a geopolitical flashpoint.
U.S. export restrictions on high-end AI chips — aimed at limiting China’s access to advanced computing power — have placed Nvidia squarely at the heart of Washington’s technology policy. The company has rushed to redesign products for overseas markets to maintain compliance and avoid sales disruptions.
The issue is expected to surface during U.S. President Donald Trump’s meeting with Chinese President Xi Jinping in South Korea on Thursday. Trump hinted that Nvidia’s advanced Blackwell chips could be discussed as part of broader tech negotiations.
Big Tech at Record Heights
The surge propelling Nvidia has lifted the broader tech landscape. Both Apple and Microsoft recently re-crossed the $4 trillion valuation threshold, fueled by strong hardware sales and massive AI investments.
Apple’s gains were driven by record iPhone 17 sales, while Microsoft’s renewed momentum came from a revaluation of its OpenAI stake, now pegged at $135 billion.
Still, Nvidia’s lead remains unmatched — both in scale and speed — as the company continues to redefine the economics of the AI era.
Investor Outlook: High Expectations, Higher Scrutiny
Nvidia’s towering valuation has amplified scrutiny ahead of each quarterly earnings report. Any sign of slowing demand or supply chain disruption could spark outsized volatility.
“Investors are betting on perfection,” said one market analyst in New York. “At this valuation, even a minor miss could wipe out hundreds of billions in market cap overnight.”
For now, though, Nvidia’s ascent shows no signs of cooling — and its dominance underscores the central role of AI infrastructure in shaping the next decade of global technology growth.
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