Nvidia Nears Historic $5 Trillion Valuation in AI-Fueled Rally

Santa Clara, California-based Nvidia is on the verge of hitting a $5 trillion market valuation, becoming the first company to achieve this milestone, following a fresh rally driven by strong demand for artificial intelligence (AI) technology.

Shares Jump After Major AI Announcement

Shares of Nvidia rose 2.8% in premarket trade on Wednesday after CEO Jensen Huang announced $500 billion in AI chip orders and plans to build seven supercomputers for the U.S. government. The announcement sparked investor enthusiasm, extending Nvidia’s dominance in the global AI semiconductor market.

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From Chipmaker to AI Industry Leader

This achievement marks Nvidia’s transformation from a niche graphics chip maker into the backbone of the global AI industry, outpacing tech giants such as Apple, Microsoft, and Alphabet. The company’s graphics processing units (GPUs) have become essential for powering AI models, data centers, and next-generation computing systems.

Industry experts noted that Nvidia’s strategic leadership and continuous innovation in AI chips have positioned it as a cornerstone of the worldwide AI infrastructure boom.

“In many ways, everything that could have gone right for the firm has gone right over the last sort of 24 hours,” said Michael Brown, Senior Research Strategist at Pepperstone.

Market Reaction and Global Impact

Nvidia’s rise underscores the growing importance of AI hardware in shaping the future of computing. The company’s products are integral to the expansion of AI models, including those used in cloud services, autonomous vehicles, and enterprise solutions.

The AI-driven surge has also vaulted Nvidia past peers in valuation terms, placing it at the forefront of Silicon Valley’s most valuable corporations and cementing Jensen Huang’s position as a leading figure in the global tech landscape.

As the company approaches the $5 trillion milestone, investors are closely watching how Nvidia’s new AI supercomputing initiatives and massive chip orders will shape its future growth and earnings trajectory.

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