Nvidia market cap crosses $5 trillion as AI boom powers the stock

Core Insights - Nvidia has achieved a historic milestone by becoming the first company to reach a market capitalization of $5 trillion, reflecting its rapid growth in the AI sector [1][4] - The company has seen its stock price increase by over 45% this year and more than 1,500% over the past five years, indicating strong investor confidence [4] - Nvidia's recent announcements at its annual GTC summit include a $1 billion investment in Nokia and discussions on quantum computing and AI factories [2] Company Performance - Nvidia's stock opened at $207.86 per share, surpassing the $5 trillion market cap just three and a half months after it first exceeded $4 trillion [1] - The company's valuation has skyrocketed from $336.9 billion in October 2022 to $5 trillion, showcasing its extraordinary growth trajectory [1] Market Context - Nvidia's market cap now exceeds the combined value of all S&P 500 energy, real estate, and materials stocks, highlighting its dominance in the market [4] - Concerns have been raised about the potential overvaluation of AI stocks, with comparisons made to the dot-com bubble of 1999 [5] - Despite these concerns, Goldman Sachs believes that the AI investment story is just beginning and that current investments will yield significant long-term returns [6][7]