Nvidia has become the first company in history to reach a $5 trillion valuation, driven by the growing demand for artificial intelligence (AI) technology. On Wednesday (October 29), Nvidia’s shares rose by 3.4% to approximately $207.85, pushing its market capitalization past the $5 trillion mark. This milestone places Nvidia ahead of other tech giants like Microsoft and Apple in terms of market value.
Over the past decade, Nvidia’s stock has soared more than 44,000%, vastly outpacing the Nasdaq and S&P 500. The company’s valuation now exceeds the gross domestic product (GDP) of Germany, making it more valuable than all but two countries: the United States and China. Nvidia’s rapid rise can be attributed to its dominance in the AI sector, with major clients such as OpenAI, Tesla, Meta, Amazon, and Oracle.
The company’s success follows CEO Jensen Huang‘s announcement of $500 billion in expected AI chip orders and plans to build seven supercomputers for the U.S. government. Additionally, Nvidia has invested $1 billion in Nokia to collaborate on developing next-generation 6G technology. Huang, who owns about 3% of Nvidia, has seen his net worth skyrocket to $174.4 billion, ranking him as the eighth-richest person globally.
The company’s remarkable growth highlights the increasing importance of AI technology in today’s world, as Nvidia continues to lead the charge in innovation and market expansion.
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