Nvidia was crowned the first $5 trillion king of the stock market on Wednesday, a valuation built entirely on its dominance of the artificial intelligence industry. The $5.05 trillion milestone is a landmark in a tech shift being compared to the launch of the iPhone.
The company’s reign is built on its cutting-edge chips, which are essential for AI. Demand is so high that the company’s value jumped from $4 trillion to $5 trillion in just three months. CEO Jensen Huang confirmed a $500 billion order book and a $100 billion partnership with OpenAI.
Nvidia’s kingdom is expanding. It is partnering with Uber on robotaxis and the US Department of Energy on supercomputers. It is also investing $1 billion in Nokia to help create 6G.
This success has been celebrated by President Donald Trump, who owns shares and called CEO Jensen Huang “incredible.” Trump is also considering a deal to let Nvidia sell chips to China, potentially boosting its value even further.
However, many are warning that the king’s crown is a bubble. The Bank of England and the IMF have both sounded the alarm. They, along with other critics, point to “circular” investments and the high failure rate of AI pilot programs as evidence that this $5 trillion valuation may be dangerously inflated.