Nvidia becomes world’s first $5 trillion company: Shares surge 5% on chip demand; AI partnerships drive record valuation

Nvidia Corp has become the world’s first $5 trillion company, marking another milestone in the artificial intelligence (AI) revolution reshaping global markets. The Silicon Valley chipmaker crossed the landmark just three months after breaching the $4 trillion mark, as its stock soared on the back of surging demand for AI chips and new strategic tie-ups, according to an AP report.Nvidia shares jumped 5.16% to $211.41 in early US trading on October 29 (9:36 am GMT-4), extending their blistering rally that has made the company the biggest beneficiary of the AI boom. The stock has risen sharply since early 2023, fuelled by a global rush for AI computing power.The company’s $5.05 trillion market capitalisation now exceeds the combined GDP of Japan, the UK and India, according to the International Monetary Fund (IMF). The milestone highlights the scale of investor confidence in Nvidia’s leadership in AI infrastructure– a technology wave widely seen as the most disruptive since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago.However, global regulators have begun to warn of overheating in the sector. The Bank of England recently cautioned that soaring valuations of AI-linked tech stocks could create a market bubble, while IMF Managing Director Kristalina Georgieva has echoed similar concerns about the rapid pace of capital flows into the AI space.On Tuesday, Nvidia CEO Jensen Huang disclosed chip orders worth $500 billion, signalling the company’s expanding reach in enterprise and government AI applications. Nvidia also unveiled a partnership with Uber to develop robotaxis and a $1 billion investment in Nokia to collaborate on 6G technology.In a major government collaboration, Nvidia is working with the US Department of Energy to build seven new AI supercomputers, AP reported. The company has also committed $100 billion to OpenAI to establish new AI data centres with at least 10 gigawatts of capacity to enhance ChatGPT’s computing infrastructure.In August, Huang said Nvidia was in discussions with the Trump administration about designing a new computer chip for China. President Donald Trump later told reporters aboard Air Force One that he plans to speak with Chinese President Xi Jinping about Nvidia’s chip plans later this week.