Nvidia Stock Soars as AI Giant Becomes World’s 1st $5 Trillion Co./ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Nvidia has become the first company in history to reach a $5 trillion valuation, driven by insatiable demand for its AI chips. CEO Jensen Huang dismissed concerns about an AI bubble, pointing to rapid commercial adoption. The milestone comes as Nvidia expands global partnerships and prepares for high-level talks during the APEC summit.
Nvidia $5 Trillion Milestone Quick Looks
- Nvidia becomes the first company to reach a $5 trillion market cap.
- Company hits milestone just 3 months after topping $4 trillion.
- Shares reached $207.86 Wednesday, with 24.3 billion shares outstanding.
- AI chip demand continues to drive explosive valuation growth.
- CEO Jensen Huang downplays bubble concerns amid global warnings.
- Nvidia reveals $500 billion in chip orders this week.
- New partnerships include Uber on robotaxis and Nokia on 6G.
- Company to build 7 AI supercomputers with U.S. Department of Energy.
- $100 billion investment in OpenAI to expand AI infrastructure.
- Nvidia chips expected to be a focus at APEC talks.
Deep Look: Nvidia Becomes First $5 Trillion Company as AI Demand Soars
October 29, 2025 — Silicon Valley — Nvidia has officially become the world’s first $5 trillion company, hitting the unprecedented milestone less than three months after surpassing the $4 trillion mark. The milestone is being hailed as further proof of the transformative impact of artificial intelligence, with Nvidia’s dominance in the AI chip market propelling its rapid rise.
On Wednesday, Nvidia shares reached $207.86 in early trading, giving the company a market capitalization of $5.05 trillion based on its 24.3 billion outstanding shares. That valuation places Nvidia ahead of the GDP of major global economies such as the United Kingdom, Japan, and India, according to IMF data.
The company’s meteoric climb is fueled by an insatiable appetite for its chips, which are used to power everything from generative AI platforms like ChatGPT to autonomous vehicles and cloud computing infrastructure.
AI Boom Drives Unprecedented Growth
Since early 2023, Nvidia stock has exploded in value as demand for artificial intelligence hardware has soared. The company’s GPUs (graphics processing units) are central to AI processing and model training — a technology race that has no signs of slowing.
CEO Jensen Huang has remained optimistic about the long-term prospects of AI, brushing off warnings from global financial leaders who fear the sector may be overheating.
“There’s no bubble here,” Huang said in a recent interview. “AI applications are no longer just interesting — they’re becoming essential and highly profitable.”
His comments come as institutions like the Bank of England and the International Monetary Fund have publicly warned that AI-driven stock valuations may be inflating too rapidly.
Expansion on All Fronts
Nvidia’s record valuation was further boosted this week when the company disclosed $500 billion in pending chip orders, signaling long-term confidence in its product pipeline.
Other major announcements include:
- A partnership with Uber to develop robotaxi systems.
- A $1 billion investment in Nokia, focusing on 6G wireless infrastructure.
- A new initiative with the U.S. Department of Energy to build seven AI supercomputers.
- A $100 billion investment in OpenAI, aimed at adding 10 gigawatts of AI data center capacity for ChatGPT and other generative AI models.
These aggressive moves signal Nvidia’s strategy to not only lead in chip manufacturing but also build a broad AI ecosystem spanning transportation, telecommunications, energy, and cloud computing.
Global Impact and APEC Summit
Huang is scheduled to attend this week’s Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, where leaders from the U.S., China, Japan, and other major economies will meet amid ongoing global trade tensions.
The event will be closely watched for a side meeting between U.S. President Donald Trump and Chinese President Xi Jinping, with Nvidia’s chips expected to be a key topic of discussion.
In August, Huang confirmed that Nvidia had initiated discussions with the Trump administration about designing new chips tailored for the Chinese market, following export controls and tariffs that have strained U.S.-China tech relations.
President Trump said aboard Air Force One that he plans to raise Nvidia’s role in AI innovation during his upcoming discussion with Xi.
Future Outlook: Beyond $5 Trillion?
Nvidia’s rise is being compared to the early iPhone era, when Apple surged from $1 trillion to $3 trillion as smartphones revolutionized the global economy. But while Apple’s rise was largely consumer-focused, Nvidia is leading the charge in a shift that’s impacting nearly every industry — from medicine and manufacturing to defense and finance.
With momentum continuing and widespread integration of AI across sectors, some analysts believe Nvidia could reach $6 trillion or more in the near future, though volatility remains a concern.
Still, Huang remains undeterred: “We’re just getting started.”
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