Nvidia Becomes First $5 Trillion Company Amid AI Boom
This comes four months after Nvidia cracked the $4 trillion barrier.
Nvidia becomes the first $5 trillion company four months after the company cracked the $4 trillion barrier. The rally has accelerated after US President Donald Trump on Wednesday said that he will discuss the chipmaker’s Blackwell artificial intelligence processors with Chinese leader Xi Jinping.
He called the chip as 'super duper' and said Nvidia Chief had shown him a version of the accelerator in the Oval office.
The president had earlier also hinted that he would allow the company to export a downgraded version of Blackwell processor to China. These comments fueled investor hopes that such a big deal would be on the table this week.
Earlier this week at the company's event Huang said, “The president has licensed us to ship to China, but China has blocked us from being able to ship to China.” “They’ve made it very clear that they don’t want Nvidia to be there right now,” he said reported Bloomberg.
Nvidia’s shares rose 5.3% to $211.63 after markets opened in New York on Wednesday. According to Bloomberg, Nvidia now accounts for nearly one-tenth of the market cap of the entire S&P 500 Index and exceeds the gross domestic product of entire nations, including India, Japan and Germany.
The comments from the President added to the momentum of the shares that was already on a tear due to earnings, new deals and the company's bullish outlook for chip demand. The rise was also on the back of Chief Executive Officer Jensen Huang forges new agreements to supply Nokia Oyj, Samsung Electronics Co. and Hyundai Motor Group with chips.
On Monday, Huang announced a flurry of new partnerships and dismissed concerns about an AI bubble. He also said the latest chips are on track to generate half a trillion dollars in revenue. The tech giant also unveiled a new system to connect quantum computers with its artificial intelligence chips.
