Nvidia’s growth is accelerating at a blistering pace. The AI chipmaker just became the world’s first $5 trillion company, hitting a $5.05 trillion market cap on Wednesday. This milestone is all the more stunning because it comes just three months after the company first crossed the $4 trillion mark.
This explosive growth is a direct consequence of the AI boom. Nvidia’s chips are the most sought-after components for powering AI software, and the demand is “ravenous.” This demand has helped propel the broader US stock market to new record highs this week.
CEO Jensen Huang is capitalizing on this momentum, announcing $500 billion in chip orders. He also unveiled a $100 billion investment in OpenAI to build out its AI infrastructure, a robotaxi partnership with Uber, and a $1 billion deal with Nokia to work on 6G.
The company’s success has earned it praise from President Donald Trump, who owns a stake in the company and has called CEO Huang “incredible.” Trump is also fueling investor optimism by suggesting he will negotiate with China to allow some Nvidia chip sales.
This rapid, $1 trillion-in-three-months ascent is drawing comparisons to the iPhone’s impact on Apple. However, it’s also fueling fears of an unsustainable bubble. The Bank of England and the IMF have flagged the risk of a market burst, and analysts are increasingly concerned about the “circular” nature of industry deals and the lack of revenue returns from corporate AI projects.