Nvidia Corp. reached a significant milestone on Wednesday, achieving a market capitalization of $5 trillion, a feat driven by CEO Jensen Huang’s aggressive strategic maneuvers that have amplified the ongoing artificial intelligence boom. Following a 3.1% rise in shares, which closed at $207.16, the company surpassed this historic benchmark just four months after it crossed the $4 trillion mark. This surge reflects growing enthusiasm as Huang continues to secure partnerships with major firms, including Nokia Oyj, Samsung Electronics Co., and Hyundai Motor Group for chip supply.
As the leading stock in a bull market primarily influenced by optimism surrounding AI’s potential to transform the global economy, Nvidia has gained 54% this year as of Wednesday’s close, contributing nearly 20% to the S&P 500 Index’s 17% increase in 2025. The next closest competitors, Microsoft Corp. and Apple Inc., hold valuations of roughly $4 trillion each.
“A $5 trillion market cap would have been unimaginable a few years ago,” remarked Keith Lerner, Chief Investment Officer and Chief Market Strategist at Truist Advisory Services. “The market is certainly placing considerable importance on the belief that AI will be transformational.”
Nvidia’s shares saw an uptick on Wednesday following comments from U.S. President Donald Trump, who indicated his intention to discuss the potential export of Nvidia’s Blackwell chip to China with President Xi Jinping. This development follows prior suggestions that a downgraded version of the processor might be permitted for export.
Huang also disclosed several new partnerships and dismissed fears of an AI bubble, asserting that upcoming chips are expected to generate revenue of $500 billion. Additionally, Nvidia unveiled a system designed to connect quantum computers with its AI chips.
The upward trend has resulted in Nvidia’s stock holding nearly 9% of the S&P 500 Index, about two percentage points more than its closest competitor. Its growing valuation surpasses the combined stock market values of the Netherlands, Spain, UAE, Italy, and Poland. Consequently, Nvidia is ranked as the sixth-largest stock market globally, behind only the U.S., China, Japan, Hong Kong, and India—just $250 billion below the latter.
Huang’s personal wealth has surged alongside the company’s success, now exceeding $180 billion according to the Bloomberg Billionaires Index, marking an increase of nearly $68 billion since the start of the year and $16 billion since Monday’s close.
Wall Street analysts maintain a positive outlook on Nvidia’s future. Data from Bloomberg indicates that of the 80 analysts covering the company, over 90% have issued buy-equivalent ratings, with just one analyst, Jay Goldberg from Seaport Global Securities, recommending a sell.
Despite this optimism, skepticism remains regarding the sustainability of Nvidia’s recent gains. The stock has soared more than 1,300% since late 2022. Dan Eye, Chief Investment Officer at Fort Pitt Capital Group, cautioned that Nvidia may encounter increased competition from firms like Advanced Micro Devices Inc. and Broadcom Inc.
Currently, Nvidia shares are priced at less than 34 times projected earnings, which is below their five-year average of approximately 39, and relatively close to the Philadelphia Stock Exchange Semiconductor Index at 29 times.
“If the expectations surrounding AI materialize, valuations may be justified, yet some of those projections could prove challenging to meet,” Eye commented. “It’s been hard to not own Nvidia, but the stock is priced for heightened expectations.”
For more detailed coverage, additional stories are available at bloomberg.com.
This article was published on October 30, 2025.
