Nvidia becomes first US public firm to reach $5 Trillion valuation boosted by A.I. Boom

Nvidia has made history by becoming the first U.S. publicly traded company to reach a $5 trillion market valuation, marking a defining moment in the global technology industry. The milestone came as CEO Jensen Huang embarked on a diplomatic tour of Asia, meeting with President Trump in what underscored the company’s growing political and economic influence. Just a few years ago, such a valuation seemed unimaginable for the chipmaker that now powers the world’s most advanced artificial intelligence systems.

The company’s meteoric rise was fueled by the A.I. revolution ignited by ChatGPT, which sparked massive investment across Silicon Valley and beyond. Nvidia’s powerful GPUs have become the backbone of artificial intelligence infrastructure, driving demand from tech giants building next-generation data centers. These chips are not just technological marvels—they are now strategic assets deeply tied to U.S. foreign policy and global competition in emerging tech.

In just four months, Nvidia added $1 trillion in market value, highlighting how concentrated wealth and innovation have become in the hands of a few tech leaders. Analysts say this dominance reflects both the company’s unmatched position in the A.I. supply chain and the rising dependence of the U.S. economy on data-driven industries. The scale of its success illustrates how the race for A.I. supremacy has transformed Nvidia from a gaming chip producer into a global economic powerhouse.

According to Harvard economist Jason Furman, data center investments—heavily reliant on Nvidia’s chips—accounted for 92% of the U.S. GDP growth in the first half of 2025. Without that contribution, the economy would have barely grown. Nvidia’s expansion has thus become a symbol of how A.I. and advanced computing are reshaping productivity, job markets, and global trade dynamics.

Still, financial experts urge caution. From Wall Street to Main Street, investors are questioning whether the hype surrounding A.I. can sustain such unprecedented valuations. “There’s unbridled optimism about where this technology is going,” said Gene Munster, managing partner at Deepwater Asset Management. “But the question is: Will it deliver? The usefulness of A.I. is still limited today.” As Nvidia’s stock soars, the world watches to see if the A.I. boom will continue—or if expectations will eventually outpace reality.

source: Business day