American technology giant Nvidia has become the first company in history to be worth $5 trillion on Tuesday. The Nvidia stock jumped nearly 5 per cent to an all-time closing high of $201.03 on NASDAQ.
Why Nvidia stock is rising?
Nvidia share price rallied after the major chipmaker announced $500 billion worth of orders for its artificial intelligence processors and plans to construct seven new supercomputers for the U.S. Department of Energy.
Nvidia CEO Jensen Huang opened his keynote speech at a developer conference in Washington, D.C., on Tuesday by praising U.S. President Donald Trump’s policies while unveiling new products and partnerships.
As a key player in the worldwide adoption of artificial intelligence, Nvidia continues to forge new deals amid the ongoing U.S.-China trade conflict — a rivalry that could shape which nation’s technology dominates global markets.
According to Reuters report, supercomputers Nvidia is developing for the U.S. Department of Energy will partly be used to support the maintenance and advancement of the nation’s nuclear weapons program. The most powerful of these systems, created in collaboration with Oracle, will feature 100,000 of Nvidia’s top-tier Blackwell AI chips.
Nvidia also announced plans to invest $1 billion in Nokia, noting that the funds will be used in part to support its AI initiatives.
According to a report by AnewZ, the two companies have entered into a strategic partnership to co-develop next-generation 6G technology. Their collaboration will focus on AI-driven networking solutions and exploring ways to incorporate Nokia’s data centre switching and optical technologies into Nvidia’s upcoming AI infrastructure.
Nvidia becomes most valuable company
Chipmaker giant Nvidia has become the most valuable Nasdaq-listed company in the history by touching $5 trillion in market capitalisation.
After Nvidia, Microsoft stands at the second position with $4 trillion in market cap. On Tuesday, Microsoft share price jumped 4 per cent to hit an intraday high of $553.72 on Wall Street.
Apple briefly crossed the $4 trillion market capitalization mark for the first time on Tuesday, becoming the third major tech giant to achieve this milestone.
The surge was driven by strong demand for its latest iPhone models, which helped ease concerns about its slower advancement in the AI space. The stock touched an intraday high of $269.89, valuing the company at $4.005 trillion, before slipping back to close 0.1% higher at a market value of $3.992 trillion.
Nvidia’s journey to $5 trillion
The chipmaker giant has witnessed its market cap crossing trillion-dollar milestones at an increasingly rapid pace. The chipmaker first reached a $1 trillion valuation in June 2023, then took 180 trading days to climb to $2 trillion.
It added another trillion in just 66 trading days, hitting $3 trillion, and in just 273 more trading days to surpass a $4 trillion market cap in July. The company’s valuation has now soared beyond $4.9 trillion.
Nvidia’s share price overview
Nvidia share price has been witnessing a strong rally in the near term. The stock has given whopping returns of 84.40 per cent in just six months and 44.27 per cent in one year.
The chipmaking giant has delivered massive returns to its long-term investors, soaring nearly 1,500 per cent over the past five years. Once a penny stock, it has astonishingly surged by 5,02,470 per cent over the last 26 years.
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