Nvidia’s latest numbers are staggering: a $500 billion order book and a $5.05 trillion market cap. The company became the world’s first $5 trillion firm on Wednesday, a valuation built on overwhelming demand for its AI chips.
The $5 trillion milestone, which comes just three months after hitting $4 trillion, highlights the explosive growth of the AI sector. The company’s value is now greater than the individual economies of Japan, India, or the UK.
The $500 billion in orders, disclosed by CEO Jensen Huang, underpins the valuation. This is bolstered by new partnerships, including a robotaxi deal with Uber and a $1 billion investment in Nokia for 6G. A $100 billion investment in OpenAI will also be used to buy Nvidia’s hardware for new datacenters.
The company’s success story has been championed by President Donald Trump. Trump, who owns up to $1.3 million in Nvidia shares, is also pushing for a deal with China’s Xi Jinping to allow sales of Nvidia’s Blackwell chips.
Despite these massive numbers, there are serious concerns that this is a bubble. The Bank of England and the IMF have both raised alarms. Analysts are concerned about the high failure rate of corporate AI pilot programs, suggesting the $500 billion in orders may be based on hype rather than sustainable business models.