Nvidia’s shares rose more than 4% on Wednesday, pushing the company past a historic $5 trillion market capitalization, making it the first publicly traded firm to reach this milestone, as reported by CNBC.

The surge highlights Nvidia’s evolution from a gaming-focused chipmaker to a central player in the artificial intelligence industry.

The stock has climbed over 50% so far in 2025, fueled by strong demand for AI processors.

CEO Jensen Huang said Nvidia expects roughly $500 billion in AI chip orders and announced plans to build seven supercomputers for the U.S. government.

“Shares of Nvidia rose more than 4% Wednesday, making the tech giant the first company to cross the $5 trillion market value threshold. 

“The extraordinary milestone reflects a remarkable rise for the company, which has evolved from a niche video game processor to an integral player in the artificial intelligence boom. 

“Nvidia’s stock, which closed up 5% Tuesday, has climbed more than 50% year-to-date,” the CNBC report read in part.

In a separate move, Nvidia revealed a $1 billion strategic investment in Nokia, forming a partnership to develop next-generation 6G network technology.

The CNBC report highlighted that U.S. stocks, driven by excitement around AI, reached new record highs on Tuesday. Tech giants Apple and Microsoft each climbed past a $4 trillion market value as their shares gained momentum.

Ark Invest CEO Cathie Wood flagged the possibility of a short-term “reality check” on AI valuations but dismissed fears of an AI bubble.

The sharp rise in AI-focused stocks comes amid concerns that valuations may be stretched, with some analysts warning of a potential market correction.

Earlier this month, the report noted that financial institutions including the International Monetary Fund and Bank of England cautioned that global stock markets could face turbulence if investor enthusiasm for AI cools.

“If our expectations for AI … are correct, we are at the very beginning of a technology revolution,” Wood said, according to CNBC at the Saudi Arabia Future Investment Initiative.

• Ark Invest CEO Cathie Wood flagged the possibility of a short-term “reality check” on AI valuations but dismissed fears of an AI bubble.

Nvidia’s ascent to a $5 trillion market valuation represents the culmination of decades of innovation and strategic growth. The company first crossed the $1 trillion mark in May 2023, a milestone that placed it among an elite group of technology giants, including Apple, Microsoft, Alphabet, and Amazon.

• This achievement reflected Nvidia’s rapid expansion beyond gaming graphics into the broader world of high-performance computing and artificial intelligence.
• By February 2024, Nvidia’s market capitalization had doubled to $2 trillion, driven by surging demand for its AI processors and its growing influence in data centers and advanced computing.
• The company’s momentum continued, and on June 5, 2024, Nvidia surpassed $3 trillion, becoming the second most valuable public company in the world at the time. This milestone highlighted not only its financial success but also its emergence as a critical player shaping the future of technology.
• These milestones illustrate a remarkable trajectory, from a niche GPU manufacturer to a cornerstone of the global AI revolution.

Source: Nairaland