A new king has been crowned in the tech world. Nvidia, the chipmaker fueling the AI revolution, has become the first company in history to reach a $5 trillion valuation. Its $5.05 trillion market cap, reached on Wednesday, signals a major power shift in Silicon Valley.
While Apple was the first to $1T, $2T, and $3T on the back of the iPhone, Nvidia has ridden the AI wave to $5T at an even more dramatic pace, adding $1 trillion in value in just three months. This ascent is thanks to the “ravenous appetite” for its chips.
CEO Jensen Huang is securing this new dynasty with a flurry of deals. A $500 billion order book, a $100 billion partnership with OpenAI, a robotaxi deal with Uber, and a $1 billion 6G investment in Nokia all point to its entrenched dominance.
This new king has a powerful ally in President Donald Trump. Trump, who holds Nvidia stock, called Huang “incredible” and is even pushing for a chip deal with China.
But every kingdom faces threats. Regulators at the Bank of England and IMF are warning of an AI bubble. They and other critics are wary of “circular” deals and the fact that most businesses are failing to see any revenue from their AI investments, suggesting the king’s new valuation may be precarious.
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