NVIDIA becomes world's 1st company with a $5 trillion valuation
What's the story
NVIDIA, the US tech giant, has made history by becoming the first company ever to hit a $5 trillion valuation. The milestone was achieved yesterday as NVIDIA's stock surged nearly 5% to an all-time closing high of $201.03 on NASDAQ. The company's shares have been on a strong rally lately, delivering massive returns of 84.40% in six months and 44.27% over one year.
Market performance
AI processor orders and supercomputers boost NVIDIA's stock
The recent surge in NVIDIA's stock price can be attributed to the chipmaker's announcement of $500 billion worth of orders for its artificial intelligence (AI) processors. The company also announced plans to build seven new supercomputers for the US Department of Energy. As a major player in the global AI revolution, NVIDIA is actively pursuing new deals amid the ongoing US-China trade war.
Strategic development
Supercomputers for US Department of Energy
The supercomputers being built by NVIDIA for the US Department of Energy will partly be used to maintain and upgrade the country's nuclear weapons program. The most powerful system, developed with Oracle, will use 100,000 of NVIDIA's high-end Blackwell AI chips.
Tech collaboration
Partnership with Nokia for AI and 6G
NVIDIA has also announced a $1 billion investment in Nokia, part of which will go into its AI efforts. The two companies have formed a strategic partnership to co-develop next-generation 6G technology. Their collaboration will focus on AI-powered networking solutions and integrating Nokia's data center switching and optical technologies into NVIDIA's future AI infrastructure.
Market dominance
NVIDIA tops NASDAQ, overtaking tech giants
With its $5 trillion valuation, NVIDIA has now become the most valuable company on NASDAQ. It has surpassed tech giants like Microsoft and Apple in terms of market capitalization. Microsoft is now second with a $4 trillion market cap, while Apple briefly crossed the $4 trillion mark for the first time yesterday, driven by strong demand for its latest iPhone models.