Nvidia shares close at record high, adding 3% to cement $5 trillion mcap

Nvidia shares closed 2.99 per cent higher on Wednesday at $211.77, extending a 4.98 per cent gain from the previous session. Despite weak market breadth, the chipmaker’s rally pushed its market capitalisation to $5.03 trillion. Nvidia is now up an astounding 14.7 per cent over the past five trading days, marking another record milestone for the AI giant.

The chipmaker, once known mainly for gaming graphics cards, now sits at the centre of the global artificial intelligence revolution—and investors are piling in.

The company’s rise has been breathtaking. In barely a few years, Nvidia transformed from a niche hardware producer into the engine room of modern AI computing. Its dominance has elevated CEO Jensen Huang to near-legend status in Silicon Valley and made Nvidia’s processors a strategic asset in the ongoing tech standoff between the United States and China.

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No other stock tells the AI story better. Since the launch of ChatGPT in 2022, Nvidia’s share price has soared more than twelvefold. The frenzy around machine learning tools, data centers, and generative AI has carried US markets to all-time highs and revived long-dormant debates about tech bubbles.

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This latest milestone came only three months after Nvidia broke the 4 trillion dollar barrier--an acceleration without precedent. To put its size in perspective, the company is more valuable than the entire global cryptocurrency market and nearly half as large as Europe’s Stoxx 600 index.

By 9.31 am in New York (7.00 pm IST), the S&P 500 was up 0.2 per cent and the Nasdaq 100 rose 0.5 per cent, fueled once again by Nvidia’s rally. The chipmaker now makes up roughly 14 per cent of the Nasdaq 100, giving it more influence on the index than any other company in history.

Industry analysts describe the current moment as a technological turning point—one many compare to the introduction of the iPhone 18 years ago. Apple went on to become the first trillion-dollar, two-trillion-dollar and eventually three-trillion-dollar company. Nvidia is now surpassing Apple’s historic milestones at a much faster pace.

Its growth is powered not only by investor enthusiasm but by massive demand. CEO Jensen Huang revealed that Nvidia has received 500 billion dollars in chip orders. New partnerships are also pouring in: Uber plans to use Nvidia technology for robotaxis, while both Nvidia and Nokia are investing 1 billion dollars to push 6G development.

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In the United States, the company is working with the Department of Energy to build seven new AI supercomputers. Nvidia also intends to invest 100 billion dollars in OpenAI to create next-generation data centers capable of delivering at least 10 gigawatts of AI computing power.

Even geopolitics is orbiting around Nvidia. In August, Huang confirmed that the company is in talks with the Trump administration about designing a new chip for China—an issue so significant that President Donald Trump said he plans to discuss it directly with Chinese President Xi Jinping on Thursday.