Nvidia made history on Wednesday, becoming the world’s first company to surpass a $5 trillion market capitalization. An early trading surge of over 3% propelled it past Microsoft and Apple, whose valuations currently hover around $4 trillion.
2. CEO’s Announcement Has Major Impact
The surge intensified after CEO Jensen Huang revealed that the company has firm orders for over $500 billion worth of AI chips through the end of 2026. This was seen by investors as a very strong indicator of future earnings.
3. Half a Trillion Dollars in Clear Revenue
Huang stated that Nvidia is perhaps the first tech company to have such clear visibility into half a trillion dollars of future revenue. This includes significant orders for the Blackwell and the upcoming Rubin chips next year.
4. Hopes for a Return to China
Nvidia’s market share in China plummeted from 95% to zero due to US sanctions, resulting in billions of dollars in losses. However, renewed hopes of reentry provided strong support to the stock.
5. Trump’s Praise and Diplomatic Discussions
President Donald Trump called the Blackwell chip “super duper” and claimed it was about ten years ahead of other chips. He also stated that he would discuss it with Chinese President Xi Jinping, which had a direct positive impact on the market.
6. Uncertainty Surrounding the H20 Chip
Nvidia’s H20 chip is a weaker version designed for China, but the 15% revenue-sharing model proposed for its distribution has not yet been finalized. Consequently, not a single H₂O unit has been shipped to China so far.
7. Large-Scale Manufacturing in the US
The company announced that its Blackwell GPUs are now being manufactured on a large scale at its Arizona plant. Nvidia has shipped 6 million units in the last four quarters and is preparing to ship another 14 million units in the next five quarters.
8. Major Partnerships and Supercomputer Projects
Nvidia shared plans to invest $1 billion with Nokia to develop new equipment for 5G and 6G networks. It also announced a collaboration with Oracle to build seven supercomputers for the U.S. Department of Energy, the largest of which will run on 100,000 Blackwell AI chips.
9. Rapid Investment by Cloud Companies
Amazon, Meta, Google, Microsoft, and other cloud giants are projected to spend up to $632 billion in capital expenditures by 2027. This will further accelerate the demand for AI chips, solidifying Nvidia’s dominance.
10. A Streak of Record-Breaking Growth
Nvidia’s rapid growth has been phenomenal: from $1 trillion in June 2023 to over $5 trillion now. The stock has already risen more than 50% in 2025 alone. This surge is a direct result of the company’s 90% market share in AI chips and the increased demand following the launch of ChatGPT.
