Nvidia Surpasses $5 Trillion Valuation on AI Boom

Tech giant Nvidia reached a landmark achievement, briefly exceeding a $5 trillion valuation in October, propelled by its pivotal role in the AI boom. The company's dominance is underscored by its 81% market share in revenue for data center chips, a result of high global demand for its AI technology.

Nvidia's stock has seen explosive growth since the debut of OpenAI's ChatGPT in November 2022. Sales and profits experienced over 60% year-over-year growth in the October quarter, surpassing Wall Street's predictions. The company has unveiled its next-generation Vera Rubin chip, poised to be a key growth driver.

Founded in 1993, Nvidia initially focused on graphics processing units (GPUs) for gaming, later finding them well-suited for AI training. Beyond GPUs, Nvidia offers integrated server solutions and specialized software, aiming to establish "AI factories" for future data centers. Partnerships with Uber and the US Department of Energy highlight its expansion into autonomous driving and quantum computing.

Nvidia is expanding its global reach, collaborating with European nations on sovereign AI infrastructure and with South Korean businesses on chip deployment. Despite facing competition and concerns about an AI bubble, the company is progressing with its next-generation Rubin chips, slated for deployment by major cloud providers in the second half of 2026. Efforts are also underway to diversify into robotics and autonomous driving technologies.