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]

Jensen Huang, chief executive officer of Nvidia Corp., during the keynote address at the Nvidia AI summit in Washington, DC, US, on Tuesday, Oct. 28, 2025. Nvidia Corp. plans to make a $1 billion equity investment in Nokia Oyj, an apparent vindication of the Finnish company's pivot from mobile networking kit into artificial intelligence by the sector's kingmaker. Nvidia Corp. Chief Executive Officer Jensen Huang announced a flurry of new partnerships and dismissed concerns about an AI bubble, saying the c ...

Core Insights - Nvidia has transformed from a lesser-known semiconductor company to a prominent player, primarily due to its booming data center sales driven by significant investments in artificial intelligence [1][2] Data Center Revenue - Nvidia leads the data center sales market with $35.5 billion in Q4 2024, significantly outpacing its closest competitor, IBM, which reported $4.2 billion [2] - Data center sales constitute 88% of Nvidia's total revenue, with a remarkable 884% increase from Q4 2022 to Q4 2024 and a 142% rise in 2024 alone [7] - The majority of Nvidia's 75% gross margin is likely derived from its data center segment, contributing to its profitability with adjusted earnings per share of $2.99, a 130% increase from the previous year [5] Demand and Global Reach - Major tech companies like Amazon, Alphabet, Microsoft, and Meta Platforms are utilizing Nvidia's processors, reflecting a global demand for AI infrastructure as countries build their AI ecosystems [6] Economic and Regulatory Concerns - Nvidia is currently exempt from tariffs, but potential future tariffs on semiconductors are being considered by the Trump administration, prompting Nvidia to shift manufacturing of its Blackwell processor to the U.S. over the next 12 to 15 months [8][9] - Some tech companies have recently reduced data center spending due to economic concerns, with Microsoft pausing a $1 billion project and Amazon halting some leases in Europe, although a drastic pullback in AI investments is not anticipated [10][11]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Nvidia chief Jensen Huang says the Silicon Valley chip titan has successfully ramped up production of its new Blackwell processor that power artificial intelligence in data centers. Nvidia on Wednesday said it finished its fiscal year with record high revenue of $130.5 billion, driven by demand for its chips to power artificial ...

Core Insights - Nvidia's shares experienced a significant increase, rising as much as 5.6% due to strong demand for its processors in a key market [1] - A report indicated that major Chinese companies have significantly increased orders for Nvidia's H20 chips, countering concerns about competition from a new AI model developed in China [3] - Nvidia is set to release its fiscal 2025 fourth quarter results, which will provide insights into ongoing demand for AI and its new Blackwell processor [4] Demand and Market Developments - The release of a next-generation AI model by DeepSeek in China initially raised concerns about reduced demand for Nvidia's processors [2] - Major Chinese firms like Tencent, Alibaba, and ByteDance have ramped up orders for Nvidia's H20 chips, indicating robust demand despite competitive pressures [3] Financial Performance Expectations - Management has projected a revenue growth of approximately 70% year over year, while analysts expect around 73% growth for the quarter [5] - Despite a remarkable 448% increase in stock value over the past three years, Nvidia's stock remains reasonably priced at less than 30 times next year's earnings estimates [5]