Nvidia hits $5 trillion valuation as AI boom powers meteoric rise

Core Insights - Nvidia has become the first company to achieve a market value of $5 trillion, marking a significant milestone in the context of the global AI boom [1][2] - The company's transformation from a graphics-chip designer to a key player in the AI industry has elevated its CEO Jensen Huang to a prominent status in Silicon Valley [2][3] - Nvidia's stock has surged 12-fold since the launch of ChatGPT in 2022, contributing to record highs in the S&P 500 and raising concerns about potential tech valuation bubbles [2] Company Performance - Nvidia's market cap surpassed $5 trillion just three months after it crossed the $4 trillion mark, exceeding the total cryptocurrency market value [3] - The company's shares rose by 3% to $207.04, resulting in a market value of $5.03 trillion [4] - CEO Jensen Huang announced $500 billion in AI chip orders and plans to build seven supercomputers for the U.S. government, further solidifying Nvidia's dominance in the AI sector [4] Leadership and Wealth - CEO Huang's stake in Nvidia is valued at approximately $179.2 billion, making him the eighth-richest person globally according to Forbes [6] - Under Huang's leadership, Nvidia's H100 and Blackwell processors have become essential for large-language models, including tools like ChatGPT [7] - While Nvidia leads in the AI race, other tech giants like Apple and Microsoft have also reached $4 trillion in market value recently [7] Industry Context - The ongoing discussions between U.S. President Donald Trump and Chinese President Xi Jinping regarding Nvidia's Blackwell chip highlight the geopolitical tensions surrounding high-end chip sales and export controls [5]