Nvidia is the first company to reach a valuation of $5 trillion

Nvidia made history on Wednesday by becoming the first company to reach $5 trillion in market value. Driven by an impressive rally that has cemented its place at the center of the global artificial intelligence boom.

This milestone underscores the company’s rapid transformation from a specialist graphics chip designer to the backbone of the global AI industry. This has turned CEO Jensen Huang into a Silicon Valley icon and made his advanced chips. Flashpoint in the technology rivalry between the United States and China.

With the AI craze pushing the S&P 500 to all-time highs and raising questions about whether exaggerated tech company valuations could trigger the next major bubble. Nvidia’s stock has increased twelvefold since ChatGPT began in 2022.

Only three months after Nvidia crossed the $4 trillion milestone. This new milestone surpasses the whole value of the cryptocurrency market and is around half the size of the Stoxx 600, Europe’s benchmark stock index.

Even if Nvidia is still the undisputed leader in the AI battle, Apple, Microsoft, and other significant tech rivals have recently had their market values reach $4 trillion.