Nvidia is no longer just a company; it’s an economic superpower. With a market capitalization of $5.05 trillion, the chipmaker is now more valuable than the individual economies of India, Japan, and the United Kingdom. This historic $5 trillion milestone was crossed on Wednesday amid a massive AI-fueled stock rally.
The company’s valuation, which grew by $1 trillion in just three months, is built on its near-monopoly on the high-end chips that power artificial intelligence. As the world scrambles to build AI infrastructure, Nvidia is reaping the rewards, with a $500 billion order book to prove it.
Nvidia is leveraging this power to forge major partnerships. It is working with Uber on robotaxis and the US Department of Energy on AI supercomputers. It’s also investing $1 billion in Nokia for 6G and a staggering $100 billion in OpenAI to scale its computing power.
This success has been championed by President Donald Trump, a shareholder who has touted the company’s rise. Trump is also dangling the possibility of a deal with China, which could boost Nvidia’s shares even further.
But is this new superpower built on solid ground? Regulators at the Bank of England and the IMF are warning of an AI bubble. They and other critics point to the high failure rate of corporate AI pilot programs and “circular” investment deals as signs that this $5 trillion valuation may be dangerously inflated.