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Nvidia has become the world's first $5 trillion company, just three months after this tech leader first broke through the $4tn valuation barrier.

By contrast, Nvidia’s worth exceeds the GDP of India, Japan and the United Kingdom, according to IMF data.

Soon after US stock markets began trading on Wednesday, Nvidia’s stock touched over $207 with 24.3 billion available shares, putting its market cap at $5.05 trillion.

Strong demand for Nvidia’s processors, seen as the top-tier in driving AI products and software, is the primary driver that the share value has surged dramatically from the start of last year.

The wider US stock market has reached multiple record highs recently, supported by massive funding in AI technology.

Major Announcements and Strategic Moves

On Tuesday, Nvidia’s CEO, Jensen Huang, revealed $500bn in processor contracts.

The company also unveiled a partnership with Uber on robotaxis and a $1 billion funding in the telecom firm, with the two planning to cooperate on 6G technology.

Furthermore, Nvidia is joining forces with the American energy agency to construct seven new advanced computing systems.

Last month, Nvidia announced that it will commit $100bn in OpenAI as within a joint effort that will include at least 10 gigawatts of Nvidia AI datacenters to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT.

This past summer, Huang said Nvidia was exploring a prospective processor tailored to the Chinese market with the Trump administration.

Donald Trump remarked on Air Force One that he would discuss with the China's leader, Xi Jinping, about Nvidia’s chips on Thursday.

AI Boom and Economic Significance

Hitting the new benchmark highlights the transformation caused by an artificial intelligence craze that is widely viewed as the biggest tectonic shift in technology after the tech pioneer Steve Jobs introduced the original smartphone 18 years ago.

The tech giant capitalized on the smartphone’s popularity to become the initial listed firm to be worth $1tn, $2tn and finally, $3 trillion.

Risks and Warnings

But there are concerns of a potential tech bubble, with UK central bank representatives earlier this month flagging the growing risk that equity values driven by the artificial intelligence surge might collapse.

IMF’s managing director has raised a similar alarm.