Nvidia hits new milestone as world's first $5tn company

Nvidia has hit a new milestone, becoming the first company in the world to reach a market value of $5tn (£3.8tn).

The US chip giant has rapidly climbed from a niche graphics-chip designer to an AI titan, as euphoria about the potential of artificial intelligence keeps driving demand for its chips and propelling its stock to record highs.

The company reached a market value of $1tn for the first time in June 2023 and hit the $4tn valuation mark just three months ago.

Shares in the chip-maker rose as much as 5.6% to more than $212 on Wednesday morning, boosted by investor optimism about Nvidia's sales in China, which has been a geopolitical flashpoint.

Nvidia has hit a new milestone, becoming the first company in the world to reach a market value of $5tn (£3.8tn).

The US chip giant has rapidly climbed from a niche graphics-chip designer to an AI titan, as euphoria about the potential of artificial intelligence keeps driving demand for its chips and propelling its stock to record highs.

The company reached a market value of $1tn for the first time in June 2023 and hit the $4tn valuation mark just three months ago.

Shares in the chip-maker rose as much as 5.6% to more than $212 on Wednesday morning, boosted by investor optimism about Nvidia's sales in China, which has been a geopolitical flashpoint.

Nvidia's share price dipped in April when global markets were jolted by US President Donald Trump's intensifying trade wars. Concerns about Trump's trade policies linger, but Nvidia's stock has still seen strong growth since the spring.

It share price has risen more than 50% so far this year.

Investors have been focused on Nvidia's access to China, which is the biggest market for its products and has been investing heavily to produce its own high-end chips.

Nvidia had previously been banned from selling its most advanced chips to China, before Trump reversed the ban in July. Nvidia has to pay 15% of its Chinese revenues to the US government in an unprecedented deal struck in the summer.

Trump, who is expected to meet with Chinese leader Xi Jinping on Thursday, said on Wednesday that the two leaders will discuss Nvidia's Blackwell artificial intelligence processors. His comments helped nudge Nvidia's stock even higher.

Jensen Huang, Nvidia's chief executive who has achieved celebrity status amid the company's meteoric rise, announced a flurry of partnerships on Tuesday. He said he expects $500 billion in AI chip orders through next year.