Nvidia Becomes First Company to Hit $5 Trillion Valuation Amid AI Frenzy

Nvidia Becomes First Company to Hit $5 Trillion Valuation Amid AI Frenzy

By Putiton Newsroom USA | October 29, 2025

Shares of Nvidia surged more than 4% on Wednesday, pushing the tech giant past the historic $5 trillion market capitalization mark the first company ever to reach the milestone.

The record-setting valuation highlights Nvidia’s extraordinary ascent from a niche video game chipmaker to the dominant force powering the global artificial intelligence boom. 

The company’s stock, which gained 5% on Tuesday, has now climbed more than 50% year-to-date.

The latest rally comes after CEO Jensen Huang revealed Nvidia expects $500 billion in AI chip orders and announced plans to build seven new supercomputers 

for the U.S. government  a sign of the company’s deepening role in national AI infrastructure.

In a separate announcement, Nvidia said it is taking a $1 billion stake in Nokia as part of a strategic partnership to develop next-generation 6G cellular technology. 

The move extends Nvidia’s reach into the telecommunications sector and underscores its ambitions beyond chips and data centers.

Still, the blistering pace of growth in AI-linked stocks has stirred concerns over market froth. Both the International Monetary Fund and the Bank of England have recently 

warned that global markets could face turbulence if investor appetite for AI cools.

Cathie Wood, CEO of Ark Invest, acknowledged the potential for a “reality check” on valuations but dismissed fears of an AI bubble. “If our expectations for AI are correct, we are at

the very beginning of a technology revolution,” Wood told CNBC during the Future Investment Initiative in Riyadh.

Nvidia’s unprecedented $5 trillion valuation cements its position as the defining company of the AI era — and a bellwether for how far the technology can reshape global markets.

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