$5T Valuation

Nvidia reached a $5T market valuation on Wednesday, becoming the first company in history to cross that milestone.

Context

In recent months, Nvidia has announced major partnerships that have driven its stock higher, including a planned $100B investment in OpenAI to build AI data centers, a $5B investment in Intel after the US government took a stake in the chipmaker, and a $1B investment in Nokia announced on Tuesday. The flurry of deals has raised concerns among some investors and analysts about an AI bubble, particularly as technology companies pour hundreds of billions into data centers and chips while current revenue remains relatively small. Just three years ago, before OpenAI's ChatGPT launched, Nvidia was valued at approximately $400B.

Historic Milestone

Nvidia's stock climbed more than 4% on Wednesday, pushing shares above $210 and propelling the company past the $5T threshold, though shares closed at $207.04.