Nvidia has made history by becoming the first company ever to surpass a $5 trillion market capitalization, highlighting its transformation from a graphics chip manufacturer into a leading player in the artificial intelligence (AI) industry.
Since the start of 2022, Nvidia shares have surged 12-fold, adding 82% just this year. The milestone comes only three months after reaching a $4 trillion valuation, surpassing the total market capitalization of cryptocurrencies and representing nearly half the value of the Stoxx 600 index.
Hargreaves Lansdown analyst Matt Britzman described the achievement not merely as a record, but as a “statement,” emphasizing Nvidia’s evolution from chipmaker to industry creator. He noted that the market continues to undervalue the company’s full potential.
Under CEO Jensen Huang, Nvidia has amassed an AI chip order portfolio exceeding $500 billion, and plans to construct seven supercomputers for the U.S. government. Core chips like H100 and Blackwell now power major AI platforms, including OpenAI products and xAI, cementing Nvidia’s role at the center of modern AI development.
Despite growing competition from AMD and emerging startups, Nvidia maintains its market leadership. The company’s dominance has attracted regulatory attention, with U.S. export restrictions on advanced chips positioning Nvidia as a key element in Washington’s tech policy toward China. Huang has encouraged inclusion of Chinese AI developers, noting that half of the world’s AI talent is based in China.
Financial experts warn that the ongoing AI investment frenzy may drive the S&P 500 index up by 20% by the end of 2026, though some caution that the cycle could slow if investors begin demanding tangible returns over projected growth.
Nvidia’s success underscores the convergence of tech innovation and financial markets, illustrating how AI and advanced semiconductor technology are reshaping global investment dynamics.
