Nvidia is on track to become the first $5 trillion company, just three months after the Silicon Valley chipmaker first broke through 4 trillion dollars barrier.
Reaching the new standard places greater emphasis on the disruption fueled by the artificial intelligence craze, which many see as the biggest tectonic shift in technology since Apple co-founder Steve Jobs introduced the first iPhone 18 years ago. Apple took advantage of the success of the iPhone to become the first public company will be valued at $1 trillion, $2 trillion and eventually $3 trillion.
But there are concerns about the possibility artificial intelligence bubbleEarlier this month, Bank of England officials flagged a growing risk that technology share prices, boosted by the AI ​​boom, could plummet. The head of the International Monetary Fund expressed similar concerns.
Nvidia's insatiable appetite for chips is the main reason the company's share price has risen so quickly since the start of 2023. The stock hit $207.80 in premarket trading on Wednesday with 24.3 billion shares outstanding, giving it a market capitalization of $5.05 trillion.
On Tuesday, Nvidia CEO Jensen Huang reported $500 billion in chip orders. The company also announced a robotaxi partnership with Uber and a $1 billion investment in Nokia, with plans to work together on 6G technology.
In addition, Nvidia is collaborating with the Department of Energy to build seven new artificial intelligence supercomputers.
Last month Nvidia announced it will invest $100 billion in OpenAI in a partnership that will add at least 10 gigawatts of Nvidia AI data centers to increase the computing power of the owner of the artificial intelligence chatbot ChatGPT.
In August, Huang said Nvidia discussion a potential new computer chip developed for China in conjunction with the Trump administration. Multiple media reports say President Donald Trump is likely to talk to Chinese President Xi Jinping about Nvidia chips on Thursday.
