In an unprecedented show of market force, Nvidia has added $1 trillion to its valuation in just three months. This explosive growth culminated on Wednesday when the chipmaker became the world’s first $5 trillion company, reaching a market cap of $5.05 trillion.
This acceleration is being driven by the artificial intelligence revolution, which relies almost exclusively on Nvidia’s advanced processors. The “ravenous appetite” for these chips has pushed the entire US stock market to record highs.
The company’s $5 trillion valuation now surpasses the individual GDPs of major world economies, including India, Japan, and the United Kingdom. This dominance is locked in by a $500 billion order book and new deals.
Nvidia is partnering with Uber on robotaxis and investing $1 billion in Nokia to co-develop 6G. A $100 billion investment in OpenAI will also be used to build massive new AI datacenters.
This rapid, unprecedented growth has also attracted unprecedented concern. The Bank of England and the IMF have both warned of an AI bubble. They are concerned that “circular” investments and a high failure rate for corporate AI projects mean these valuations are not sustainable.
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