Nvidia becomes the first company in the world to be worth $5 trillion.
Chipmaker driven by the artificial intelligence race reaches historic milestone and consolidates dominance in the technology market.
247 - Nvidia reached an unprecedented milestone on Wednesday (29), becoming the first company in the world to reach a market value of US$5 trillion. The achievement reflects the explosive growth in global demand for artificial intelligence (AI) chips, which has driven the company's performance in recent years.
According to CNN BusinessThe valuation was reached at the opening of trading in New York, just three months after the company surpassed the $4 trillion mark. Nvidia took about 13 months to go from $3 trillion to $4 trillion, but it only took 90 days to reach the new record. The company's shares (NVDA) rose 3% on Wednesday and are projected to rise by about 50% by 2025, keeping the manufacturer among the leaders of the S&P 500 index.
Meeting between Trump and Xi Jinping fuels expectations.
One of the factors that boosted Nvidia's valuation was the expectation of a possible reopening of the Chinese market for its advanced AI chips, given the prospect of new talks between US President Donald Trump and Chinese leader Xi Jinping.
The day before, the company's shares had already risen following a presentation by CEO Jensen Huang, who outlined an ambitious vision for the company's future. During his first keynote address at the GTC AI conference in Washington, Huang stated that Nvidia chips will be present in "everything from cell towers to robotic factories and self-driving cars."
The executive also expressed enthusiasm for the current American government. "President Trump has been very receptive to technological innovation. This is essential for the advancement of AI in the United States," Huang stated, according to CNN.
Nvidia expands billion-dollar investments in the sector.
Nvidia stands out not only for selling high-performance chips, fundamental to the operation of data centers that support AI, but also for its aggressive investment strategy. Recently, the company announced a partnership with OpenAI, creator of ChatGPT, which foresees the purchase of billions of dollars in chips, while Nvidia will invest US$100 billion in the startup over time.
Furthermore, the company announced a $5 billion investment in Intel, which is struggling to remain competitive. However, the series of billion-dollar investments and the sector's rapid growth have fueled fears that the AI market may be approaching a bubble.
Even so, Nvidia executives remain optimistic. During the August earnings call, the company projected that by the end of the decade it could benefit from up to $4 trillion in AI infrastructure investments. In the last quarter, Nvidia reported net income of nearly $26 billion, solidifying its position as the epicenter of the current tech boom.
Apple also surpasses $4 trillion.
During the same period, Apple reached a market value of $4 trillion, reinforcing the resilience of its products — especially the iPhone — even in the face of growing competition in the field of artificial intelligence.
