Nvidia Became First Company in History to Reach a Market Capitalization of $5 Trillion
Credit: Nvidia
Nvidia reached a historic market capitalization of $5 trillion in today’s trading. Shares rose 5.2% to $211.47 as of 9:36 AM New York time allowing Nvidia to surpass this milestone. It’s been just four months since the company’s market valuation surpassed $4 trillion.
Nvidia shares have been rising rapidly over the past few years due to strong demand for its AI chips. In recent weeks, the company’s rise has been fueled by a series of major deal announcements. On October 28, the company announced plans to invest $1 billion in Finnish company Nokia. It had previously announced plans to invest $100 billion in OpenAI and $5 billion in Intel. Nvidia shares have risen 15% over the past month and more than 55% since the start of 2025.
According to David Kotak, co-founder of consulting firm Cumberland Advisors, the “outstanding valuation” of $5 trillion also signifies high expectations for the company. “This will only be met if margins and profits maintain their current growth trajectory or even improve,” he believes.
Some analysts believe Nvidia will still be forced to cede market share to competitors such as Advanced Micro Devices and Broadcom. There are also many concerns surrounding the lack of the necessary energy infrastructure for accelerated AI development.
