Nvidia Becomes World’s First $5 Trillion Company as AI Boom Drives Record-Breaking Rally

AI chipmaker Nvidia (NASDAQ: NVDA)  has officially become the first $5 trillion company in company after its share prices surged nearly 5% to $210.90 in early Wall Street trading. Plus, this historic milestone shows the strong confidence of investors in the future of artificial intelligence (AI) and Nvidia’s dominant position at the forefront of the industry.

On top of that, the Nvidia share price climbed, pushing its market capitalisation past $5.1 trillion.  Hence, the company has overtaken tech giants Apple and Microsoft, as they are valued at $4 trillion. Moreover, the California-based company’s growth highlights how AI innovation is reshaping the global economy and redefining technology investment trends. 

Nvidia Share Price Surges Past $210 as AI Demand Soars

The momentum share price of this company comes on the heels of AI collaborations and breakthroughs. This is because  CEO Jensen Huang announced major new projects spanning AI data centres, quantum computing, wireless infrastructure, and robotaxis at its recent GTC conference in Washington D.C.

After the event, a minimum of six Wall Street firms raised their stock target price of this company. Hence, it shows growing optimism about its long-term growth potential. Plus, Melius Research’s Ben Reitzes called Huang’s presentation a “home run,” as they lifted his price to $300. In addition, Evercore ISI’s Mark Lipacis raised his target to $261, calling the company the “gold standard AI play.”

The surges also coincide with the potential reentry of this tech giant into the Chinese market based on the trade discussion between U.S. President Donald Trump and China’s Xi Jinping. Hence, experts believe that any easing of export restrictions on AI chips could significantly boost the global sales of this company.

Nvidia CEO Jensen Huang Nears $200 Billion Net Worth

According to Forbes, the growth in the share prices of this company has also boosted the net worth of Jehsen Huang to nearly $182 billion. Moreover, his wealth rose by $7.6 billion in a single day as Nvidia’s shares soared as much as 5.6% to $212.19.

Huang founded the company in 1993. Now, he has been instrumental in growing the company from a gaming graphics pioneer to the heartbeat of the AI revolution. Moreover, its H100 and Blackwell GPUs are the foundation of advanced AI models such as ChatGPT and Elon Musk’s xAI.

Under the CEO’s leadership, the company has also announced multi-billion-dollar investments, including $100 billion in OpenAI and $5 billion in Intel. However, the decision also focused on empowering the U.S. semiconductor manufacturing and AI innovation.

Why $5 Trillion Milestone Matters Globally?

The unprecedented valuation of this tech giant is more than the GDP of France or Germany. In fact, it has also combined market cap of combined market cap of Tesla, Meta, and Netflix. On top of that, the GPU of this company now powers almost every AI-driven technology. Hence, it makes it the most influential stock in today’s AI-driven bull market.

Moreover, it has also contributed to about 20 per cent of the S&P 500’s 17% rise in 2025, which underscores its impact on global markets. Moreover, experts, like Art Hogan of B. Riley Wealth Management, note that it remains “largely ahead of any competitor,” due to its operational efficiency and constant innovation.

On the other hand, experts warn that valuations are extremely elevated. Hence, CFRA’s Sam Stovall said investors should remain cautiously optimistic. They said, “News around it will likely get better, not worse, but elevated valuations mean the stock could be sensitive to any negative headlines.” In short, the rally could be negative in future. As of now, it has become the first $5 Trillion Company. 

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