Nvidia Makes History, Becomes First $5 Trillion Company in the World

Nvidia on Wednesday, October 29, 2025, became the first publicly traded company in history to reach a market valuation of $5 trillion. The milestone cements the chipmaker's central role in the global Artificial Intelligence boom and highlights its meteoric transformation from a niche gaming chip designer to the single most critical hardware provider for the AI industry.

The company's shares surged in morning trading, pushing its market capitalization over the landmark threshold. This historic achievement comes just three months after Nvidia first crossed the $4 trillion mark, demonstrating the stunning speed and scale of the market's enthusiasm for AI.

An AI-Fueled Rocket Ship
The insatiable, ravenous appetite for Nvidia's advanced Graphic Processing Units (GPUs) is the sole driver of its historic rally. These chips, such as the company's H100 and newer Blackwell processors, have become the essential "picks and shovels" of the AI gold rush, providing the raw computing power necessary to train and run large language models like those from OpenAI, Google, and Meta.

Nvidia's stock has climbed 12-fold since the launch of ChatGPT in late 2022, an event that triggered a global arms race for AI capabilities among tech giants and governments, all of whom are reliant on Nvidia's hardware.

The latest surge was propelled by a string of blockbuster announcements from CEO Jensen Huang at the company's GTC event in Washington, D.C., which solidified its market dominance:

Massive Order Backlog: Huang disclosed that Nvidia has visibility on $500 billion in AI chip orders, reflecting an unprecedented pipeline of demand.

Government & Strategic Partnerships: The company announced plans to build seven new AI supercomputers for the U.S. government and a $1 billion investment in Nokia to collaborate on 6G technology. This is in addition to a previously announced $100 billion commitment to OpenAI to build new AI data centers.

A New Titan of Industry
To put the $5 trillion valuation in perspective, Nvidia's market capitalization now exceeds the combined GDP of Japan, the United Kingdom, and India. It is larger than the entire market value of its chip-making competitors (Broadcom, TSMC, AMD, Intel, and Arm) combined.

The company's dominance has made it a focal point in the U.S.-China tech rivalry, with its most advanced chips subject to U.S. export controls.

While some analysts warn that the soaring valuations in the AI sector are reminiscent of the dot-com bubble, the market consensus is that Nvidia's position is, for now, unassailable. "The market continues to underestimate the scale of the opportunity, and Nvidia remains one of the best ways to play the AI theme," said Matt Britzman, an equity analyst at Hargreaves Lansdown.

With this new milestone, Nvidia has not just joined the club of tech titans like Apple and Microsoft—it has created a new one, becoming the undisputed king of the AI economy.