Nvidia has officially become the first public company to hit a $5 trillion market valuation, just three and a half months after crossing the $4 trillion mark.
The GPU giant’s rapid rise continues to reflect the explosive global demand for AI hardware.
AI Power Fuels Record Valuation
Over the past week, Nvidia’s stock price has surged by more than 14%, largely due to strong AI chip demand and renewed optimism about its prospects in China. Currently, U.S. export restrictions prevent Nvidia from selling its most advanced Blackwell AI chips to Chinese buyers, while China has also placed limits on certain Nvidia imports.
That could change soon. Former U.S. President Donald Trump recently said he plans to discuss Nvidia’s “super duper chip” with Chinese President Xi Jinping on October 30, raising hopes that trade barriers might ease.
The Heart of the AI Revolution
Nvidia’s GPUs are essential for developing and training modern AI models, including large language models like ChatGPT. Virtually every major tech company now depends on Nvidia’s hardware for AI research, cloud infrastructure, or generative tools.
Apple, for example, is building out its own AI infrastructure to power Apple Intelligence and future features. While Apple primarily relies on its custom Apple Silicon chips, it has reportedly adopted Nvidia’s server technology for certain AI workloads.
Apple’s Parallel Milestone
While Nvidia leads the AI hardware race, Apple achieved its own milestone this week. Ahead of its earnings report, Apple briefly hit a $4 trillion valuation—though shares dipped slightly afterward. The company has also begun shipping its first AI servers, designed for internal use rather than competing directly with Nvidia.
Nvidia’s $5 trillion valuation highlights how central AI has become to the tech industry. As demand for advanced GPUs continues to surge, Nvidia’s dominance looks stronger than ever—and this milestone may only be the beginning of a new era in computing.
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