Nvidia becomes first $5 trillion company in history as Trump comments, GTC reveal boost stock to new heights
Nvidia (NVDA) on Wednesday became the first company in history to be valued above $5 trillion.
Nvidia stock rose as much as 3.4% at the market open, pushing its market capitalization above $5 trillion for the first time as the chip giant continues to be the biggest winner from the AI boom.
The company reached the milestone after comments from President Trump on Wednesday ahead of a planned meeting with CEO Jensen Huang added to optimism around prospects for Nvidia’s sales in China.
Trump told reporters Wednesday that he and Huang would be “speaking about Blackwells,” Bloomberg reported, referring to the company’s AI chips, a version of which could win approval for export to China.
In its most recent quarterly report on Aug. 27, Nvidia said it realized no sales of its earlier-generation H20 chips into China. In July, the White House said it had struck a deal with Nvidia to allow H20 chip exports to China in exchange for a 15% cut of revenue. Nvidia said that arrangement had not yet been formalized.
Nvidia’s rise on Wednesday also comes after a 5% jump in the stock on Tuesday, which was catalyzed by a slew of announcements from the company at its GTC event in Washington, D.C.
Among other announcements, Nvidia revealed Tuesday it is working with the US Department of Energy to build seven new supercomputers, including one that will use 10,000 Blackwell GPUs.
Other announcements include a deal to work with Uber (UBER) to build a fleet of self-driving cars and an agreement to sell 1,000 GPUs to drugmaker Eli Lilly (LLY). Nvidia also said it is working with Nokia (NOK) to help develop next-generation 6G cellular technology.
Nvidia also announced tie-ups with Palantir (PLTR) and Oracle (ORCL), as well as partnerships on a wireless 6G buildout with telecom companies including Cisco (CSCO) and T-Mobile (TMUS). The company also highlighted how its AI tech is powering robotics initiatives from companies ranging from Amazon (AMZN) to Foxconn, Caterpillar (CAT), and Belden (BDC), among others.
Read more: How does Nvidia make money?
The company also announced a new open systems architecture, Nvidia NVQLink, aimed at accelerating the development of quantum supercomputers, including partners like Rigetti (RGTI) and IonQ (IONQ).
During his keynote presentation on Tuesday, Huang said the company expects to realize $500 billion in GPU sales through the end of 2026. The company’s total revenue tallied just over $100 billion in the first two quarters of this year.
Nvidia stock has gained over 50% this year and more than doubled from its lows reached in April, after Trump’s surprise “Liberation Day” tariff announcements briefly jolted markets. On Tuesday, the S&P 500 (^GSPC) reached a record high.
Companies ranging from Amazon (AMZN) and Google (GOOG, GOOGL) to Microsoft (MSFT), Meta (META), Oracle (ORCL), and OpenAI (OPAI.PVT), as well as a variety of research labs around the globe, are buying up Nvidia’s GPUs as fast as possible to power their vast data center construction projects as they vie for an upper hand in the AI race.
Nvidia has also been busy putting its own cash to work, investing up to $100 billion in OpenAI, which is also one of its most important customers.
While Nvidia remains the AI chip leader, competition in the space is increasing.
Rival AMD (AMD) has signed a deal with OpenAI for up to 6 gigawatts worth of AI processors and inked a separate deal with Oracle for 50,000 GPUs.
Qualcomm (QCOM) has also announced that it’s entering the AI data center market with its own AI accelerator chips. Nvidia’s customers, including Amazon, Google, and Microsoft, are also increasingly developing and using their own AI chips.
For now, though, Nvidia remains the go-to leader in AI.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
Click here for the latest technology news that will impact the stock market
Read the latest financial and business news from Yahoo Finance