🔗 Share this article Nvidia Hits World's First Milestone of Turning into a $5 Trillion Enterprise Nvidia now stands as the world's first $5tn company, only three months after this tech leader first broke through the $4tn market value mark. By contrast, Nvidia’s worth exceeds the GDP of India, Japan and the United Kingdom, as reported by IMF data. Shortly after US stock markets began trading on Wednesday, Nvidia’s stock touched over $207 with 24.3 billion shares outstanding, placing its market capitalization at $5.05tn. Strong demand for Nvidia’s chips, seen as the top-tier in powering AI products and software, is the primary driver that the company’s stock price has surged dramatically from the start of last year. American equities has hit new peaks recently, supported by massive funding in artificial intelligence. Key Developments and Strategic Moves On Tuesday, Nvidia’s CEO, Jensen Huang, disclosed $500 billion in processor contracts. The company also announced a collaboration with the ride-hailing service on robotaxis and a $1bn investment in the telecom firm, with the two planning to cooperate on next-generation networks. In addition, Nvidia is joining forces with the American energy agency to construct multiple AI supercomputers. Recently, Nvidia announced that it will invest $100bn in OpenAI as within a partnership that will add at least 10GW of Nvidia AI datacenters to boost the computing power for the developer of the artificial intelligence chatbot ChatGPT. This past summer, Huang mentioned Nvidia was exploring a potential new computer chip designed for China with the Trump administration. Donald Trump said aboard his plane that he would discuss with the China's leader, Xi Jinping, about Nvidia’s chips later this week. AI Boom and Market Impact Hitting the new benchmark highlights the transformation caused by an artificial intelligence craze that is widely viewed as the biggest tectonic shift in technology after the Apple co-founder Steve Jobs unveiled the original smartphone nearly two decades back. Apple capitalized on the smartphone’s popularity to emerge as the first publicly traded company to be valued at $1tn, $2 trillion and eventually, $3tn. Potential Concerns But there are concerns of a possible AI bubble, with UK central bank representatives earlier this month flagging the growing risk that equity values driven by the AI boom might collapse. The head of the IMF has issued comparable warnings.