Nvidia becomes the first company ever to reach a market cap of $5 trillion, just months after becoming the first $4 trillion company.
Nvidia makes stock market history once again. Yesterday, Nvidia reached the mythical milestone of 5 trillion dollars in total market value for the first time in its history and as the first company ever. An announcement by Jensen Huang that Nvidia still has 500 billion dollars worth of orders in the pipeline gave the final push.
Nvidia’s steep rise is impressive. The first trillion was reached in 2023, not coincidentally a few months after the launch of ChatGPT. The AI craze that erupted then has been a golden goose for the company, as suddenly everyone wanted Nvidia’s chips, and still very much wants them. The second trillion followed in February 2024 and since then it has only accelerated. The four trillion milestone was only just reached in July.
What Bubble?
Nvidia held its biannual GTC conference in Washington this week, so there was plenty of news to gather. Besides new chip technology, partnerships with Nokia for 6G, Uber, Crowdstrike, and the rather controversial Palantir were announced. Relations with the U.S. government have also been smoothed over. During his keynote, Huang had words of praise for Donald Trump, and Nvidia will build seven supercomputers for the Department of Energy.
However, investors want to hear the hard numbers. Huang announced that Nvidia has $500 billion worth of orders for Blackwell and the upcoming generation of Rubin chips in the pipeline between now and the end of 2026, of which we got
Pessimists (or realists?) fear that it’s only a matter of time before the AI bubble bursts. Nvidia’s continued stock market success contradicts that for now. Huang doesn’t want to hear about a bubble either. “I don’t believe we’re in an AI bubble. We use different models and numerous services, and we’re happy to pay for them.”
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