Nvidia Becomes First Company Worth $5 Trillion, Overtakes India’s Projected 2025 GDP

Nvidia has reached a historic milestone, becoming the first company valued at over $5 trillion. This breakthrough highlights a surge driven by the booming artificial intelligence (AI) market and Nvidia’s strategic moves. The company’s market cap crossed the $5 trillion mark on Wednesday, with shares closing 2.99% higher at $207.04. In just four months, Nvidia’s valuation jumped from $4 trillion, reflecting rapid growth fueled by AI enthusiasm.

Nvidia’s ascent showcases the power of the current AI frenzy, which is considered the most significant technological shift since Apple introduced the iPhone 18 years ago. NVIDIA stock alone has contributed nearly 20% to the S&P 500’s 17% gain this year, making Nvidia the leading stock in this bullish rally. The company’s rapid rise demonstrates how investor optimism around AI’s impact is reshaping market dynamics.

Nvidia’s Rapid Rise

Nvidia’s market value now surpasses the combined worth of stock markets in the Netherlands, Spain, UAE, Italy, and Poland. The company’s stock is worth more than all but five global markets namely the US, China, Japan, Hong Kong, and India. Its valuation exceeds the GDP of India, Japan, and the UK. Nvidia’s CEO Jensen Huang announced a record of $500 billion in chip orders and new partnerships with giants like Uber and Nokia.

Huang also revealed plans to develop AI supercomputers in collaboration with the US Department of Energy. In september they announced $100 billion investment in OpenAI to expand AI data center capacity.

Furthermore, there is talk of a new chip designed specifically for China, reflecting Nvidia’s expanding global influence. The excitement around Nvidia’s valuation was further fueled by hopes of a potential export deal with China, which President Donald Trump delivered on Thursday after having discussion with Chinese President Xi Jinping.

How will the Future Look Like?

Nvidia’s stunning valuation already makes its stock the most influential in the S&P 500, accounting for nearly 9% of the index. The company’s explosive growth has lifted Jensen Huang’s net worth to over $180 billion. This rise shows how vital Nvidia has become in the world’s AI infrastructure.

Analysts widely favor Nvidia, with over 90% giving it a buy rating. Their optimism is rooted in the company’s strong earnings growth forecast, with some predicting a valuation justified by future AI-related revenue. Still, some experts warn that valuations might be excessive, given Nvidia’s 1,300% rise since late 2022. Competitors like AMD and Broadcom could chip away at Nvidia’s market share, potentially tempering future gains.

Should Nvidia be worth more than countries?

The company now stands as one of the most valuable firms globally, alongside tech giants like Apple and Microsoft. This milestone not only spotlights Nvidia’s dominance but also raises questions about the sustainability of this rally. Market experts acknowledge the risks of a bubble forming since the AI craze has already driven stocks to extraordinary levels. Still, Nvidia remains one of the top stock gainers today, and its influence on global markets shows no signs of slowing down.

It can be argued that valuing a company higher than entire nations like India raises questions about market sustainability and the limits of stock valuations. Countries have diverse economies, large populations, and physical assets that underpin their worth, unlike a single tech firm’s market cap.

This disparity might suggest that Nvidia’s current valuation is driven more by speculation than solid economic fundamentals. Ultimately, while Nvidia’s growth is impressive, treating it as an economic powerhouse on the scale of a nation sparks debate about the true nature of corporate worth in today’s high-flying markets.

Written By Fazal Ul Vahab C H 

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