Nvidia has become the first company in the world to cross the symbolic $5 trillion mark in market capitalization — a sign of the soaring global appetite for AI-driven investments, according to Reuters. The company’s chips are essential for building artificial intelligence technology used by firms such as OpenAI and Oracle.
Specifically, Nvidia’s stock climbed 5.45% to $211.99, buoyed by the capitalization of a series of new commercial deals struck recently in China and the United States. The new record comes just three months after Nvidia first surpassed $4 trillion in market value.
Market capitalization is the total value of a publicly listed company, calculated by multiplying the number of its shares by the price of each share.
To put the figure in perspective, $5 trillion exceeds the GDP of every country in the world except the United States and China. The company’s valuation is now greater than the combined worth of Tesla, Meta, and Netflix.
AI-focused firms have accounted for roughly 80% of the gains in the U.S. stock market this year. However, concerns are mounting over a potential “AI bubble” — and whether certain companies may be overvalued — as tech stocks continue to smash one record after another, BBC reports.
Πηγές: Reuters, BBC
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