Nvidia has become the world’s first US$5 trillion (S$6.49 trillion) company.
Just three months ago, the Silicon Valley chipmaker was the first to break through the USS$4 trillion (S$5.19 trillion) market value barrier.
The burgeoning market value has been driven by the artificial intelligence industry and wider U.S. stock market boom, in particular, a tech stock surge.
Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, and the company has far outgrown its competitors in the chip industry.
Nvidia reached a market cap of US$5.05 trillion (S$6.56 trillion) shortly after U.S. stock markets opened on Wednesday, Oct. 29.
Its shares touched US$207.86 (S$270) with 24.3 billion shares outstanding.
Nvidia's rise is accompanied by the U.S. stock market hitting multiple record highs recently.
Rise and rise of AI
Nvidia’s chips are seen as the most cutting edge in powering artificial intelligence products and software.
The rapid rise in the company’s stock price has been occurring since early 2023, due to hefty investments in artificial intelligence.
A day before Nvidia's historic stock market achievement on Oct. 28, Nvidia’s CEO, Jensen Huang, disclosed a US$500 billion (S$649.2 billion) in chip orders.
U.S. president Donald Trump said on Air Force One a week before that he would speak with the China president Xi Jinping about Nvidia’s chips.
Trump suggested that he may allow a less powerful version of the Blackwell chip by Nvidia to be sold to China.
This could potentially send Nvidia’s shares higher.
Trump owned up to US$1.3 million (S$1.69 million) worth of Nvidia shares, a end-2024 financial report disclosed.
Trump and Xi met on Oct. 30.
Top photo via Nvidia Asia Pacific
