Nvidia has hit a new milestone, becoming the first company in the world to reach a market value of $5tn (\u00a33.8tn).<\/p>\n
The US chip-maker has rapidly climbed from a niche graphics-chip manufacturer to an AI titan, as euphoria about the potential of artificial intelligence keeps driving demand for its chips and propelling its stock to record highs.<\/p>\n
The company reached a market value of $1tn for the first time in June 2023 and hit the $4tn valuation mark just three months ago<\/a>.<\/p>\n Shares in the chip-maker rose as much as 5.6% to more than $212 on Wednesday morning, boosted by investor optimism about Nvidia’s sales in China, which has been a geopolitical flashpoint.<\/p>\n The world’s most valuable company – the biggest winner in the AI spending spree – has soared past its rivals in the technology sector. <\/p>\n It has struck deals with leading AI companies including OpenAI and Oracle as its chips continue to power the AI boom.<\/p>\n Nvidia’s value now exceeds the GDP of every country except the US and China, according to data from the World Bank, and is higher than entire sectors of the S&P 500.<\/p>\n Microsoft and Apple have also recently crossed the $4tn valuation mark, reinforcing a broader tech rally fuelled by optimism on Wall Street about AI spending.<\/p>\n AI-related enterprises have accounted for 80% of the stunning gains in the American stock market this year.<\/p>\n But concerns about an AI bubble<\/a> – and whether these companies are overvalued – continue to mount as tech stocks hit record after record.<\/p>\n