Silicon Valley | October 30,2025 | SKY LINK TIMES
Nvidia has officially become the first company in history to hit a $5 trillion market capitalization, marking a seismic moment in the ongoing artificial intelligence (AI) revolution. The milestone comes just three months after the chipmaking giant first crossed the $4 trillion mark — a testament to the explosive global demand for AI technologies.
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The AI Boom That Fueled Nvidia’s Meteoric Rise
Nvidia’s stock closed at $207.04 on Wednesday, with 24.3 billion shares outstanding, bringing its total market cap to an astonishing $5.03 trillion. To put that in perspective, the company’s valuation now exceeds the GDP of India, Japan, and the United Kingdom, according to data from the International Monetary Fund (IMF).
The company’s dominance stems from its early lead in developing graphics processing units (GPUs) — initially designed for gaming — that are now the backbone of the world’s most advanced AI systems, including ChatGPT and generative image tools. As the AI revolution accelerates, so does the global appetite for Nvidia’s cutting-edge chips.
Record Deals and Strategic Partnerships
Nvidia’s CEO Jensen Huang announced $500 billion in chip orders earlier this week, underscoring the insatiable demand for AI hardware. The company also revealed a series of major partnerships, including:
1.A $1 billion investment in Nokia to jointly develop 6G technologies.
2.A collaboration with Uber on autonomous robotaxis.
3.A deal with the U.S. Department of Energy to build seven new AI supercomputers.
Last month, Nvidia pledged a $100 billion investment in OpenAI, the creator of ChatGPT, to power massive new AI data centers with more than 10 gigawatts of computing capacity.
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Global Politics and Trade Tensions Loom
The historic milestone coincides with Jensen Huang’s visit to South Korea for the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. The event is expected to be overshadowed by a high-stakes meeting between Donald Trump and Chinese President Xi Jinping, as trade tensions over advanced technology escalate.
Trump recently struck a controversial deal with Nvidia and AMD to ease chip export restrictions to China in exchange for a 15% revenue share, despite national security warnings. The U.S. government also acquired a 10% stake in Intel, valued at $11 billion, while Nvidia announced a $5 billion investment in Intel to support joint semiconductor projects.
Is There an AI Bubble?
While Nvidia’s meteoric rise is being celebrated as a triumph of innovation, financial authorities are sounding alarms. The Bank of England and IMF have both warned of a possible AI-driven market bubble, with tech valuations rising faster than fundamentals justify.
Still, Huang remains confident. “AI is no longer just interesting — it’s indispensable,” he said. “This is not a bubble; this is the foundation of the next industrial revolution.”
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