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Nvidia now stands as the pioneering $5tn firm, just a quarter after the Silicon Valley chipmaker initially surpassed the $4tn market value barrier.

In comparison, Nvidia’s value is greater than the gross domestic product of India, Japan and the United Kingdom, according to IMF data.

Soon after US stock markets began trading on Wednesday, Nvidia’s shares touched $207.86 with 24.3 billion available shares, putting its market cap at $5.05 trillion.

Strong demand for Nvidia’s chips, regarded as the most cutting edge in driving AI products and software, is the primary driver that the company’s stock price has surged dramatically since early 2023.

The wider US stock market has reached new peaks this week, supported by expansive investment in artificial intelligence.

Key Developments and Partnerships

Earlier this week, Nvidia’s Chief Executive, Jensen Huang, disclosed $500 billion in chip orders.

Nvidia also announced a partnership with Uber on autonomous taxis and a $1bn funding in the telecom firm, with the two planning to work together on 6G technology.

Furthermore, Nvidia is joining forces with the American energy agency to build multiple AI supercomputers.

Last month, Nvidia stated that it will invest $100bn in an AI research organization as part of a joint effort that will add at least 10GW of AI computing facilities to boost the processing capacity for the developer of the AI assistant ChatGPT.

This past summer, Huang said Nvidia was exploring a prospective computer chip tailored to the Chinese market with the former U.S. government.

Donald Trump said aboard his plane that he would discuss with the Chinese president, Xi Jinping, about Nvidia’s technology on Thursday.

AI Boom and Market Impact

Reaching this milestone highlights the upheaval caused by an AI frenzy that is widely viewed as the biggest tectonic shift in technology after the tech pioneer Steve Jobs introduced the first iPhone nearly two decades back.

Apple rode the iPhone’s success to emerge as the initial listed firm to be worth $1 trillion, $2 trillion and finally, $3tn.

Risks and Warnings

However, worries exist of a potential tech bubble, with UK central bank representatives recently flagging the growing risk that tech stock prices driven by the AI boom might collapse.

IMF’s managing director has raised a similar alarm.