Nvidia Becomes First $5 Trillion Company as GTC Sparks $500B AI Chip Orders

Nvidia has become the first publicly traded company to hit a market value of roughly $5 trillion after an October 29 rally tied to its GTC Washington, D.C. announcements, underscoring the outsized demand for its AI processors. CEO Jensen Huang said the company has visibility into about $500 billion in AI chip orders and outlined plans to help build seven AI supercomputers for the U.S. government.

The Breakthrough

  • First company to cross the $5T milestone amid a broader AI-led market surge.
  • Shares jumped in the wake of GTC, fueled by Huang’s order-book disclosure.
  • Commitment to support building seven U.S. government AI supercomputers.
  • Microsoft and Apple hovered around the $4T mark as AI spending accelerated across Big Tech.

Technical Details

  • Nvidia’s current and next-gen AI accelerators (e.g., H100 and Blackwell) underpin leading model training and inference workloads.
  • The company’s roadmap and supply commitments signal continued scale-up of data center GPU deployments across hyperscalers and government labs.
  • Partnerships span cloud, telecom, and enterprise AI—reinforcing end-to-end stacks from chips to software platforms.

Impact and Applications

  • The milestone helped lift major indices and intensified focus on AI capex, with tech peers also notching multi-trillion valuations.
  • New and expanded collaborations—ranging from OpenAI and Oracle to Nokia and Eli Lilly—signal broader industry adoption of accelerated computing for research, healthcare, and networks.
  • For enterprises, the message is clear: GPU capacity is becoming a strategic resource for competitive AI deployment.

Future Outlook

  • Nvidia reports next on November 19, 2025; investors will watch for order timing, supply constraints, and margins.
  • Regulatory and geopolitical dynamics—especially export controls—remain key variables for 2026 guidance.
  • Expect intensified competition from rival chipmakers and ongoing debate over potential AI-driven valuation bubbles.

Nvidia’s $5T moment caps a historic run and crystallizes a broader shift: AI infrastructure is now central to both market leadership and national strategy. The next checkpoints—delivery against the $500B order book and progress on the seven supercomputers—will determine how durable this lead proves to be.

reuters.com reuters.com