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| Nvidia stock hits record highs as it becomes the world’s first $5 trillion company amid booming AI chip demand. |
Nvidia Becomes World’s First $5 Trillion Company Amid Soaring AI Chip Demand
Silicon Valley, October 29, 2025: Nvidia Corporation has officially become the world’s first company to cross the $5 trillion market capitalization mark, powered by record-breaking demand for its artificial intelligence (AI) chips and major global partnerships. The tech giant’s shares surged over 5% in early U.S. trading, reflecting investor confidence in the company’s dominant position in the rapidly expanding AI ecosystem.
According to market data, Nvidia’s valuation now exceeds the combined GDP of Japan, the U.K., and India, highlighting the scale of investor optimism toward the company’s AI-driven growth strategy. The milestone comes just three months after Nvidia crossed the $4 trillion mark, underlining its unmatched momentum in the semiconductor industry.
AI Boom Fuels Historic Valuation
The company’s AI chip business continues to drive global demand as corporations, startups, and governments accelerate their investment in generative AI, cloud computing, and data infrastructure. Analysts say Nvidia’s latest achievement cements its position as the backbone of the AI revolution, much like Apple did during the smartphone era.
“Nvidia has become the world’s technology engine,” said a U.S. equity strategist. “Its chips are powering everything — from data centers and self-driving cars to next-generation 6G networks.”
Strategic Partnerships and Government Projects
Nvidia CEO Jensen Huang revealed new chip orders worth over $500 billion, expanding the company’s reach across multiple industries. The firm also announced a $1 billion partnership with Nokia to co-develop 6G and AI networking technologies, and a major tie-up with Uber to build autonomous robotaxis.
In addition, Nvidia is collaborating with the U.S. Department of Energy to develop seven new AI supercomputers, further strengthening its leadership in advanced computing infrastructure. The company has also pledged $100 billion to OpenAI to create high-performance data centers supporting ChatGPT and other AI systems.
Regulatory Concerns Surface
Despite the record valuation, regulators worldwide have raised concerns about a possible AI market bubble. The Bank of England recently warned that excessive valuations could pose financial risks, while IMF Managing Director Kristalina Georgieva urged caution over the pace of capital inflows into AI-linked assets.
Future Outlook
Experts believe Nvidia’s growth story is far from over as the company continues to lead innovation in chips, AI models, and next-generation computing. However, volatility in tech markets and potential regulatory scrutiny could shape its trajectory in the months ahead.
As of today, Nvidia’s shares trade at $211.41, up 5.16%, with analysts expecting continued momentum as global demand for AI infrastructure surges.
Source:Social Media