Nvidia tops USD 5 trillion, first company to hit new valuation record

Nvidia, which has made history by becoming the world's first publicly traded company to cross a USD 5 trillion market capitalisation, cementing its position as the central pillar of the global artificial intelligence (AI) boom.

Nvidia achieved this milestone on Wednesday, 29 October 2025, just three months after it had first breached the USD 4 trillion mark, illustrating the unprecedented velocity of its growth.

The primary catalyst is the insatiable global demand for its advanced Graphics Processing Units (GPUs), particularly its H100 and the newer Blackwell processors. These chips are not merely graphics cards; they are the fundamental engines behind the complex, computationally intensive processes of Generative AI and Large Language Models (LLMs) that power applications like ChatGPT. Since the launch of ChatGPT in 2022, Nvidia's shares have surged by an incredible 12-fold.

Strategic dominance and massive commitments

The chipmaker's valuation surge was recently boosted by a slew of announcements that underscore its market dominance and future revenue visibility. CEO Jensen Huang recently disclosed a staggering USD 500 billion in AI chip orders, providing investors with high confidence in the company's financial pipeline. Furthermore, Nvidia unveiled several high-profile partnerships and investments, including:

• A significant collaboration with the U.S. Department of Energy to build seven new AI supercomputers, with the most powerful system, created with Oracle, set to feature 100,000 top-tier Blackwell chips.

• A USD 1 billion investment in Nokia to co-develop next-generation 6G technology and AI-driven networking solutions.

• An earlier, massive commitment to invest USD 100 billion in OpenAI to establish new AI data centers, ramping up the computing power for the owner of the ChatGPT chatbot.

Financial and geopolitical significance

The company's USD 5.05 trillion market cap is a impressive figure, one that exceeds the entire Gross Domestic Product (GDP) of nations like India, Japan, and the United Kingdom combined. It is larger than the combined market value of all its key semiconductor rivals, including Broadcom, TSMC, and AMD. This heavy weight has made Nvidia a major driver of the broader U.S. stock market's record highs, raising a growing debate among financial analysts and regulators, including the Bank of England and the IMF, about the potential for an "AI bubble" due to "frothy valuations" and the circular nature of some AI investments.