Nvidia Just Became the World’s First $5 Trillion Company
Not even four months after American technology company Nvidia rode the AI surge to become the world’s first $4 trillion company, it has become the first ever to cross the $5 trillion threshold.
As of early this morning, Nvidia’s share price reached over $212, which put its total market cap well over $5 trillion. At the time of writing, the company’s stock price has decreased slightly to just under $207, keeping its market cap at $5.02 trillion. The company’s 52-week high stock price is $212.19, which Bloomberg reports was achieved around 11 AM ET today.
This is just the latest chapter in Nvidia’s meteoric rise. While long a successful technology company and chipmaker, Nvidia has significantly benefited from the ongoing AI arms race. The company’s stock price has increased from around $12 to its high watermark of $212.19 over the past five years, with the largest total value gains occurring since the start of 2024, when Nvidia’s stock was around $50. Since 2022, Nvidia’s stock has gone up by over 1,300 percent.
Nvidia went from dramatically trailing the valuations of monolithic presences in the tech space like Alphabet, Microsoft, and Apple to beating them all across $4 trillion and now $5 trillion valuation thresholds.
The landmark accomplishment this morning is hot on the heels of Nvidia’s announcement that it had bought $1 billion in Nokia shares to help accelerate Nvidia’s AI-RAN innovations and help the company transition from 5G to 6G networking infrastructure. Obviously, buying $1 billion in shares of a company like Nokia instantly increases Nvidia’s own value by a commensurate amount, but this is nonetheless a monumental moment in the U.S. corporate landscape.
“Nvidia has become the most-important stock in a bull market that’s been driven by optimism for AI to revolutionize the global economy,” Bloomberg reports. The publication adds that Nvidia’s stock accounts for about 20% of the S&P 500 Index’s 17% gains so far this year.
The market is clearly putting significant faith in artificial intelligence’s value and its potential transformational power. However, it remains unclear whether AI will primarily create positive cultural and societal change and who will benefit the most from it. Perhaps as importantly, there is justifiable concern about who will be harmed by its continued development. There remains significant skepticism surrounding AI and ongoing worry that it is just another, bigger dot-com-esque bubble waiting to burst.
Image credits: Header photo licensed via Depositphotos.
