NVIDIA becomes the world’s first company with a market capitalization of $5 trillion
NVIDIA became the first company in the world to surpass $5 trillion in market capitalization after its shares rose 3.1% to $207.16 a share, just four months after surpassing the $4 trillion mark. The company’s growth has been accelerated by new deals CEO Jensen Huang has struck with Nokia, Samsung and Hyundai to supply chips for artificial intelligence, Bloomberg reports.
NVIDIA is a major driver of the current stock market rally driven by the AI boom. Its shares have risen 54% since the beginning of the year, accounting for about 20% of the S&P 500’s total gain. The company’s market capitalization has already surpassed the stock markets of the Netherlands, Spain, Italy, the UAE, and Poland, now trailing only the United States, China, Japan, Hong Kong, and India.
After US President Donald Trump said he might be in talks with Xi Jinping to allow NVIDIA to sell simplified versions of its Blackwell chips to China, the company’s stock price rose even more. Meanwhile, Jensen Huang announced new partnerships and said the new generation of processors could generate up to half a trillion dollars in revenue.
Huang’s fortune has increased to $180 billion, up $68 billion from the beginning of the year. More than 90% of analysts recommend buying NVIDIA shares, although some predict a slowdown in growth. Since the end of 2022, the company’s shares have risen by more than 1,300%, but competitors AMD and Broadcom may take away part of the market in the future.
Despite this, NVIDIA remains a key symbol of the era of artificial intelligence, and the development of global financial markets largely depends on its success.
As a reminder, on October 29, NVIDIA, Stellantis, Uber, and Foxconn announced the creation of a joint robotaxi service. As part of the project, Stellantis will manufacture cars, NVIDIA and Foxconn will be responsible for the hardware and software of autonomous driving systems, and Uber will integrate these vehicles into its transportation platform.
