Nvidia, a global leader in artificial intelligence (AI) and chip-making company, is on course to become the world’s first company to hit $5 trillion in valuation. This comes as the company’s shares surged more than 3% in pre-market trading on Wednesday.
A report by Financial Times explained that Nvidia’s stock has climbed nearly 50% year-to-date, driven by increasing demand for its Blackwell-based chips. The tech giant has also landed massive partnerships across data centres, robotics, and cloud computing.
Unveiled earlier this year, Nvidia’s Blackwell GPU architecture continues to power the company’s dominance in AI and high-performance computing. The technology is embraced by enterprise data centres, public cloud infrastructure, robotics platforms and quantum research labs.
Nvidia has redefined itself from a niche graphics processor maker to being a leader in infrastructure provider amid the AI era.
Jensen Huang
Recently, CEO Jensen Huang revealed the company expects to receive $500 billion in AI chip orders over the coming year. He added that Nvidia will build seven new AI supercomputers for the U.S. government, further cementing Nvidia’s role at the core of national-scale computer infrastructure.
The tech giant’s hardware, network and software platforms continue to reinforce the foundation of the emerging AI economy. And it’s championing the adoption as global carriers, cloud providers, and governments race to build capacity for AI workloads.
“We’re witnessing the next industrial revolution, and this time, the factories are data centres,” Huang added.
For Nvidia, crossing the $5 trillion mark would significantly redefine its position as a leader among U.S. tech titans, which includes Apple, Microsoft, and Alphabet. It also signals a statement on how the company is making marks with AI computing, infrastructure and chip production.
Also Read: Global tech leader, Nvidia is offering these 7 AI courses for free.
Nvidia’s rise to the World’s most valuable company
In June 2024, Nvidia briefly became the world’s most valuable company for the first time before it was overtaken by Microsoft and Apple. Later in October 2024, the chipmaker’s stock market value briefly touched $3.53 trillion, slightly above Apple’s $3.52 trillion.
In July, the company crossed the $4 trillion valuation mark, becoming the first company in the world to reach the milestone and solidifying its position. The company is now on course to reach and cross the $5 trillion mark, powered by its AI computing and chip production.
Before this milestone, the company witnessed a fall before it climbed in both revenue and valuation.
In 2020, Nvidia reported earnings of $2.796 billion, with an annual revenue of $10.918 billion, a 6.8% YoY drop. At that time, its shares traded at over $531 per share, and its market capitalisation was valued at over $328.7 billion in January 2021.
For the second half of 2020, the chip maker reported sales of $3.87 billion, which was a 50% rise from the same period in 2019. The surge was attributed to sales and people’s higher demand for computer technology.
In May 2023, Nvidia crossed $1 trillion in market valuation and grew to $1.2 trillion by the following November. For its strength, size, and market capitalisation, the company was selected as one of Bloomberg’s “Magnificent Seven”, the seven biggest companies on the stock market.
In June 2024, the company’s market capitalisation reached $3 trillion for the first time, becoming the world’s third most valuable company. This move increased the accessibility of its shares to investors and followed a significant rise in the company’s value, driven by growing demand for its AI-focused semiconductors.
The company became the world’s most valuable company, surpassing Microsoft and Apple, on June 18, 2024, after its market capitalisation exceeded $3.3 trillion.
After getting dumped to third by Microsoft and Apple, Nvidia slowly soared its way back to becoming the world’s biggest technology company in October 2024. A year later, it’s set to cross the $5 trillion valuation mark.
The development comes amid a $1 billion strategic alliance with Nokia. Announced on Tuesday, the collaboration aims to enable communication service providers (CSPs) to deploy AI-powered 5G-Advanced and 6G networks.
The deal will see Nvidia invest $1 billion in the Finnish vendor, becoming one of its largest shareholders.
