Nvidia Hits World's First Milestone of Becoming a $5tn Corporation
Nvidia now stands as the pioneering $5tn firm, only a quarter after the Silicon Valley chipmaker initially surpassed the $4 trillion valuation barrier.
By contrast, Nvidia’s value exceeds the gross domestic product of India, Japan and the United Kingdom, as reported by IMF data.
Shortly after American exchanges began trading on Wednesday, Nvidia’s stock touched $207.86 with 24.3bn available shares, putting its market cap at $5.05tn.
Ravenous appetite for Nvidia’s processors, regarded as the most cutting edge in driving AI products and software, is the main reason that the share value has surged dramatically from the start of last year.
American equities has reached multiple record highs recently, buoyed up by expansive investment in AI technology.
Major Announcements and Partnerships
On Tuesday, Nvidia’s Chief Executive, Jensen Huang, disclosed $500 billion in chip orders.
The company also unveiled a collaboration with Uber on autonomous taxis and a $1bn investment in Nokia, with the two planning to work together on 6G technology.
In addition, Nvidia is teaming with the American energy agency to build seven new advanced computing systems.
Last month, Nvidia announced that it will invest $100bn in an AI research organization as part of a joint effort that will add at least 10 gigawatts of Nvidia AI datacenters to ramp up the computing power for the developer of the AI assistant ChatGPT.
In August, Huang mentioned Nvidia was discussing a potential new processor tailored to China with the former U.S. government.
Donald Trump remarked aboard his plane that he would speak with the Chinese president, Xi Jinping, about Nvidia’s technology later this week.
AI Boom and Market Impact
Reaching this milestone highlights the upheaval being unleashed by an artificial intelligence craze that is considered the biggest tectonic shift in technology since the tech pioneer Steve Jobs unveiled the first iPhone nearly two decades back.
The tech giant rode the iPhone’s success to emerge as the initial listed firm to be valued at $1 trillion, $2tn and eventually, $3tn.
Potential Concerns
However, worries exist of a potential tech bubble, with UK central bank representatives earlier this month flagging the growing risk that equity values pumped up by the artificial intelligence surge might collapse.
IMF’s managing director has raised a similar alarm.
