Nvidia Becomes First Company to Hit $5 Trillion Valuation on AI Momentum

This article first appeared on GuruFocus.

Nvidia (NVDA, Financials) became the first publicly traded firm to have a market value of $5 trillion. This gave it an even bigger lead in the AI field. After CEO Jensen Huang said that the company had received $500 billion in AI chip orders and planned to build seven supercomputers for the U.S. government, shares went up 4.6%.

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The company's valuation milestone comes only three months after surpassing $4 trillion, reflecting investor confidence in continued AI spending. Nvidia's H100 and Blackwell chips remain core components powering large language models such as ChatGPT and xAI.

Since 2022, Nvidia's stock has climbed more than twelvefold, helping lift broader U.S. equity benchmarks including the S&P 500 and Nasdaq 100. Analysts say the company's position as the primary supplier of high-performance AI chips has made it both a market driver and a focal point of global competition.

President Donald Trump is expected to discuss Nvidia's Blackwell chip with Chinese President Xi Jinping this week, as Washington's export restrictions on advanced semiconductors remain a key point of tension.

At current levels, CEO Jensen Huang's stake in Nvidia is valued near $179 billion, according to regulatory filings. The rally has widened the gap between Nvidia and its peers in the so-called Magnificent Seven, though Apple and Microsoft have each crossed $4 trillion in value this year.

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