Nvidia Becomes First Public Company to Reach $5 Trillion Market Value Amid AI Boom

Nvidia became the first publicly traded company to reach a $5 trillion market valuation, driven by its dominant role in the artificial intelligence (AI) industry and the surge in demand for its advanced AI chips. Since the launch of ChatGPT in 2022, Nvidia's shares have increased twelvefold, reflecting its transformation from a niche graphics-chip maker into a central player in AI technology. CEO Jensen Huang announced $500 billion in AI chip orders and plans to build seven supercomputers for the U.S. government, highlighting the company's critical position in both the tech industry and U.S. economic growth. The milestone places Nvidia's valuation above major tech companies like Microsoft and Apple and exceeds the GDP of major economies such as Japan, emphasizing its global economic significance. However, analysts and economists caution that Nvidia's rapid ascent may reflect overly optimistic expectations, raising concerns about a potential market correction if AI adoption does not deliver consistent commercial results. Nvidia also faces challenges from competitors and the need to sustain innovation amid this unprecedented growth.