Nvidia Nears Historic $5 Trillion Valuation as Shares Jump 4%

• Nvidia Corp. (NVDA) shares rose nearly 4% to $209.01 in premarket trading, on track to become the first company to reach $5 trillion market cap, following a 5% prior session gain, 44% year-over-year increase, and 50% year-to-date rise driven by its AI dominance via GPUs evolved from gaming origins.
• CEO Jensen Huang projected $500 billion in AI chip orders, while Nvidia announced seven U.S. government supercomputers and a $1 billion stake in Nokia Corp. (NOK) for 6G-AI telecom advancements, deepening its global AI ecosystem role.
• Amid AI-fueled U.S. stock records, with Apple Inc. (AAPL) and Microsoft Corp. (MSFT) surpassing $4 trillion, Nvidia’s growth raises bubble concerns but is supported by revenue, CUDA platform, and H100/H200 chips outpacing rivals in AI training.

Nvidia Corp. (NVDA) stands on the cusp of a historic valuation milestone, with shares advancing nearly 4% to $209.01 in premarket trading on Wednesday, positioning the semiconductor leader to surpass the $5 trillion market capitalization threshold as the first publicly traded company to achieve it. This surge builds on a robust trajectory, as NVDA stock has risen 5% in the prior session, 44% year-over-year, and 50% year-to-date, underscoring the company’s pivotal role in powering the artificial intelligence revolution through its advanced graphics processing units, originally designed for gaming but now essential for data center infrastructure and machine learning workloads.

The momentum reflects Nvidia’s deepening integration into global AI ecosystems, highlighted by CEO Jensen Huang’s recent disclosure of anticipated $500 billion in AI chip orders, signaling sustained demand from hyperscalers and enterprises alike. Complementing this, the firm unveiled plans to construct seven new supercomputers for the U.S. government, further solidifying its contributions to national computing initiatives and high-performance computing advancements. In a parallel development, Nvidia’s $1 billion investment in Nokia Corp. (NOK) establishes a strategic alliance aimed at accelerating 6G cellular technology, blending AI capabilities with next-generation telecommunications to enhance network efficiency and edge computing.

This ascent occurs amid a broader U.S. equity market upswing driven by AI enthusiasm, where the major indices notched record closes on Tuesday, propelled by technology sector strength. Apple Inc. (AAPL) and Microsoft Corp. (MSFT) both eclipsed $4 trillion in market value following share gains, exemplifying how AI investments – from cloud services to hardware – are reshaping corporate landscapes and investor portfolios. Yet, the rapid escalation prompts scrutiny over potential overvaluation, as explosive AI spending has spurred unprecedented dealmaking and premium pricing, reminiscent of past technology – driven expansions that tested market resilience. Nvidia’s trajectory, however, appears anchored in tangible revenue growth and technological dominance, with its CUDA software platform and H100/H200 chip families continuing to outpace competitors in training large language models and generative AI applications. As these dynamics unfold, Nvidia’s prospective $5 trillion status not only crowns its evolution but also amplifies the stakes for the entire AI supply chain.

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