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Nvidia Hits Staggering $5 Trillion Valuation, Fueled by AI Chip Demand and Potential China Re-Entry
In a monumental achievement, Nvidia made history Wednesday, becoming the first company globally to reach a breathtaking $5 trillion market capitalization. Shares of the chipmaking giant surged over 3% in early trading, solidifying its position as the world’s most valuable company, now ahead of tech titans Microsoft and Apple, both valued at approximately $4 trillion.
This unprecedented rise follows a pivotal announcement from CEO Jensen Huang at the company’s GTC developer conference in Washington, D.C., on Tuesday. Huang revealed that Nvidia has secured more than $500 billion in orders for its cutting-edge AI chips through the end of 2026.
This represents what Huang described as unparalleled visibility into future revenue for a technology company. “I think we are probably the first technology company in history to have visibility into half a trillion dollars [in revenue],” Huang stated, referencing orders for the current Blackwell generation and upcoming Rubin chips, slated for launch next year.
Adding further momentum to Wednesday’s gains was the potential for expanded access to China’s market. President Donald Trump indicated aboard Air Force One that he planned to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping during their meeting Thursday in Busan, South Korea. Trump lauded the Blackwell processor as “super-duper” and suggested it is “probably 10 years ahead of any other chip.”
This discussion holds significant implications for Nvidia, which has been largely excluded from China-previously one of its largest markets-due to U.S. export controls and Chinese government restrictions. Earlier in October, Huang confirmed that the company’s market share in China had plummeted from 95% to zero. This loss has cost Nvidia billions in revenue, with the company reporting only $2.8 billion from China in its most recent quarter, a stark decline from $15.5 billion in the prior period.
Nvidia had been operating under a proposed arrangement to share 15% of revenue from sales of its H20 chip-a less powerful processor designed to comply with U.S. export restrictions-with the U.S. government in exchange for export licenses. However, the company stated in August that this agreement had not been formalized, and no H20 chips have been shipped to China under this framework.
During Tuesday’s conference, Huang also announced that Nvidia is now manufacturing its Blackwell GPUs in full production at a facility in Arizona, a move he attributed to President Trump’s efforts to bring manufacturing back to the U.S. The company disclosed it has shipped 6 million Blackwell chips over the past four quarters and anticipates delivering an additional 14 million units over the next five quarters.
Further solidifying its market position, Nvidia unveiled partnerships with Nokia, investing $1 billion to develop telecommunications equipment incorporating its chips for 5G and 6G networks. The company also announced plans to collaborate with Oracle on building seven supercomputers for the U.S. Department of Energy, with the largest system featuring an astounding 100,000 Blackwell AI chips.
Huang underscored that capital spending by major cloud computing companies-Amazon, Meta, Google, Microsoft, Oracle, and CoreWeave-is projected to reach $632 billion by 2027. Morgan Stanley analysts estimate total hyperscaler capital expenditures will grow 24% next year to nearly $550 billion, while Citi analysts raised their forecast to $490 billion for 2026, up from an earlier estimate of $420 billion.
Nvidia’s rapid ascent has been remarkable. The company reached the $5 trillion threshold just three months after becoming the first to hit $4 trillion in July.
Its growth trajectory has been steep: it crossed $1 trillion in June 2023, $2 trillion in February 2024, and $3 trillion in June 2024. Before the debut of OpenAI’s ChatGPT in late 2022, the company was valued at approximately $400 billion.
The stock has soared more than 50% in 2025 alone, adding over $400 billion in market capitalization across just two trading days. Nvidia’s shares closed above $200 on Tuesday for the first time before climbing further Wednesday morning.
Nvidia’s dominance is rooted in its graphics processing units, which are crucial for training and running the large language models that power artificial intelligence. The company commands an estimated 90% market share of AI chips used to build the server farms that fuel the AI systems of Microsoft, Meta, Amazon, OpenAI, and other major technology companies.
Apple and Microsoft also joined the $4 trillion club this week. Apple achieved the milestone Tuesday following strong demand for its iPhone 17 models, while Microsoft’s valuation also crossed $4 trillion after news of its stake in a restructured OpenAI.