In a landmark moment for the tech world, Nvidia Corp. has crossed the $5 trillion market capitalization threshold, becoming the first company ever to achieve this valuation. This milestone, reached on October 29, 2025, underscores the explosive growth of artificial intelligence (AI) and Nvidia’s central role in powering it.
Nvidia’s shares jumped as much as 5.2% in early trading, closing the morning session at $211.47 and pushing the company’s total market value to $5.05 trillion. This surge comes just four months after Nvidia surpassed the $4 trillion mark in June, highlighting the rapid pace of its ascent fueled by global demand for AI technology.
At the heart of this rally is the insatiable need for Nvidia’s high-performance chips, which are essential for training and running advanced AI models. Chief Executive Officer Jensen Huang has sealed a series of high-profile partnerships that have supercharged investor confidence. These include collaborations with Uber to build autonomous robotaxis, a $1 billion investment in Nokia for next-generation 6G networks, and deals to supply chips to Samsung Electronics and Hyundai Motor Group. Nvidia is also teaming up with the U.S. Department of Energy to construct seven new AI supercomputers and has committed $100 billion to OpenAI for massive data centers capable of handling at least 10 gigawatts of power—enough to enhance tools like ChatGPT.
Huang revealed that Nvidia has secured $500 billion in chip orders from enterprises and governments worldwide, signaling a broadening adoption of AI across industries from automotive to telecom. Even geopolitical tensions haven’t slowed the momentum: The company is in talks with the incoming Trump administration about designing specialized chips for China, with President Donald Trump set to discuss the plans directly with Chinese President Xi Jinping.
To put this in perspective, Nvidia’s $5 trillion valuation now exceeds the combined gross domestic product (GDP) of major economies like Japan, the United Kingdom, and India, according to International Monetary Fund data. Analysts compare the AI boom to the iPhone’s revolutionary impact nearly two decades ago, positioning Nvidia as the undisputed leader in AI infrastructure.
While the future looks bright with ongoing expansions in AI computing, some watchdogs are sounding alarms. The Bank of England has warned that skyrocketing valuations in AI-related stocks could signal a potential market bubble, and International Monetary Fund Managing Director Kristalina Georgieva has flagged risks from the rapid influx of capital into the sector.
As AI continues to reshape the global economy, Nvidia’s milestone isn’t just a win for the company—it’s a testament to how quickly transformative technology can rewrite the rules of business. Investors will be watching closely to see if this rally sustains or if cooling concerns temper the hype.