Nvidia’s market cap rocketed past $5 trillion on Wednesday, making it the first company in history to do so. The $5.05 trillion valuation was reached as the AI boom continues to send US tech stocks to record highs. The chipmaker’s value has swelled by $1 trillion in just three months.
The company has found a powerful ally in President Donald Trump. Speaking in South Korea, Trump called CEO Jensen Huang an “incredible guy” and has repeatedly used Nvidia as a “success story.” Trump also disclosed a personal financial interest, owning up to $1.3 million in Nvidia shares as of last year.
Significantly, Trump suggested he might allow a less-powerful version of Nvidia’s Blackwell chip to be sold to China. This move could open up a vast market and send shares even higher. The president stated on Air Force One that he would speak with Chinese President Xi Jinping about the matter.
This political tailwind comes on top of soaring demand for Nvidia’s AI chips. The company recently announced $500 billion in orders, a robotaxi partnership with Uber, a $1 billion investment in Nokia for 6G, and a $100 billion partnership with OpenAI to scale its AI datacenters.
The AI craze is being hailed as the biggest tech shift since the iPhone. But this rapid expansion is also causing alarm. Regulators, including the Bank of England and the IMF, are concerned about a potential AI bubble. Critics argue the industry’s growth is based on circular investments and that businesses are not yet seeing real revenue returns from their AI projects.