- Nvidia’s market capitalization exceeded $5 trillion on Wednesday, a milestone no other company has reached
- Stock gained 3.4% at market open following a 5% increase the previous day after the company’s GTC conference
- Trump indicated plans to meet with CEO Jensen Huang about Blackwell chip exports to China
- The company unveiled partnerships spanning government supercomputers, autonomous vehicles, and 6G wireless technology
- Nvidia’s valuation now exceeds the GDP of Germany at $5.12 trillion versus $5.01 trillion
Wednesday marked a defining moment for Nvidia. The chip designer’s valuation surpassed $5 trillion for the first time ever.
No company in corporate history has crossed this threshold before. Nvidia is now charting completely new territory.
Shares jumped 3.4% when markets opened. This came on top of Tuesday’s 5% rally.
The two-day surge followed Nvidia’s GTC conference in Washington. The event featured a wave of partnership announcements and revenue projections.
Trading above $210 per share, Nvidia’s market cap sits at $5.12 trillion. Only the United States and China have larger economic outputs.
Germany’s projected nominal GDP is $5.01 trillion. Nvidia is worth more than that entire nation’s annual economic activity.
The stock has more than doubled since hitting lows in April. Year-to-date gains exceed 50%.
Trump’s remarks on Wednesday morning helped drive the latest climb. He mentioned plans to speak with CEO Jensen Huang about Blackwell processors.
These chips could receive clearance for Chinese markets. That would open up revenue streams currently blocked by export restrictions.
Nvidia reported zero H20 chip sales to China in its August 27 quarterly filing. A July agreement with the White House would allow these exports for a 15% revenue share.
The company noted this deal hasn’t been finalized. China remains a potential growth market waiting to materialize.
Conference Unveils Major Corporate Deals
Tuesday’s GTC event packed in announcement after announcement. The Department of Energy partnership stands out as particularly large.
Nvidia will help construct seven supercomputers for the federal agency. One system alone will incorporate 10,000 Blackwell GPUs.
Uber struck a deal to develop autonomous vehicle fleets using Nvidia technology. Eli Lilly committed to buying 1,000 GPUs for pharmaceutical research.
Nokia joined forces with Nvidia on 6G cellular network development. Palantir and Oracle both revealed new collaborations.
Telecom giants Cisco and T-Mobile are working with Nvidia on wireless infrastructure. Companies like Amazon, Foxconn, Caterpillar, and Belden are deploying Nvidia AI for robotics applications.
A new quantum computing initiative called Nvidia NVQLink also launched. Partners include Rigetti and IonQ for quantum supercomputer advancement.
Revenue Targets and Competitive Landscape
Huang delivered eye-popping projections during his keynote address. The company anticipates $500 billion in GPU sales by the end of 2026.
Current revenue runs just over $100 billion for the year’s first half. Hitting that target would mean extraordinary acceleration.
The market value climbed $2.73 trillion since early April. That’s when tariff concerns briefly hammered tech stocks.
Demand for AI processors continues driving growth. Major technology companies are scrambling to secure GPU supplies.
Amazon, Google, Microsoft, Meta, Oracle, and OpenAI represent key customers. They’re building massive data centers to power AI development.
Nvidia put its own money behind OpenAI with up to $100 billion in investments. OpenAI simultaneously ranks among Nvidia’s biggest buyers.
The competitive picture is shifting though. AMD secured an OpenAI agreement for 6 gigawatts of AI processors.
AMD also landed an Oracle contract for 50,000 GPUs. Qualcomm just entered the data center accelerator market with new chip designs.
Amazon, Google, and Microsoft are designing proprietary AI processors. This could reduce their reliance on external suppliers like Nvidia.
Shares traded at $210.37 Wednesday morning. Nvidia holds the top spot as the world’s most valuable public company.
