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Nvidia’s share price rally follows the company’s announcement of $500 billion worth of orders for its cutting-edge AI processors.
Nvidia’s stock has been on a remarkable upward trajectory.
American tech powerhouse Nvidia has made history by becoming the first company ever to reach a market valuation of $5 trillion. The milestone was achieved on Tuesday after Nvidia’s shares jumped nearly 5% to close at an all-time high of $201.03 on the Nasdaq.
Why Nvidia Stock Is Soaring
Nvidia’s share price rally came after the company announced $500 billion worth of orders for its cutting-edge artificial intelligence (AI) processors and plans to build seven new supercomputers for the US Department of Energy.
During a keynote address at a developer conference in Washington, D.C., CEO Jensen Huang unveiled new AI products and strategic partnerships while commending US President Donald Trump’s policies, underscoring the company’s close alignment with America’s broader tech ambitions.
As one of the biggest beneficiaries of the AI revolution, Nvidia continues to strike new deals amid the US-China technology rivalry, which is increasingly shaping the global balance of power in advanced computing.
According to a Reuters report, the upcoming supercomputers being developed for the US Department of Energy will support the maintenance and modernization of the nation’s nuclear weapons programme. The most powerful among them, developed jointly with Oracle, will feature 1,00,000 of Nvidia’s flagship Blackwell AI chips, setting new benchmarks in computational capability.
New Investment and Strategic Partnerships
In a major move to diversify its portfolio, Nvidia also announced a $1 billion investment in Nokia to strengthen its AI initiatives. As reported by AnewZ, both companies have entered into a strategic partnership to co-develop next-generation 6G technology, integrating AI-driven networking with Nokia’s data centre and optical switching technologies.
Nvidia Tops Global Market Cap Rankings
With the latest surge, Nvidia has become the most valuable company ever listed on the NASDAQ, overtaking both Microsoft and Apple.
Microsoft now stands at the second position with a $4 trillion market cap, after its shares rose 4% to hit an intraday high of $553.72 on Tuesday. Meanwhile, Apple briefly crossed the $4 trillion mark for the first time, driven by strong demand for its new iPhone models, which helped ease investor concerns over its slower AI push. Apple’s stock reached an intraday high of $269.89, valuing it at $4.005 trillion, before closing slightly lower at $3.992 trillion.
Nvidia’s Rapid Journey to $5 Trillion
The chipmaker’s ascent has been nothing short of meteoric. Nvidia crossed the $1 trillion valuation mark in June 2023, and since then, each subsequent trillion has come at a faster pace:
- It took 180 trading days to reach $2 trillion,
- 66 days more to hit $3 trillion,
- And just 273 additional trading days to surpass $4 trillion in July.
Now, Nvidia’s market value has skyrocketed past $4.9 trillion, cementing its dominance in the AI and semiconductor space.
Stock Performance: Unmatched Returns for Investors
Nvidia’s stock has been on a remarkable upward trajectory. In just the past six months, it has rallied 84.4%, while its one-year gain stands at 44.27%. For long-term investors, the numbers are even more staggering: The stock has delivered nearly 1,500% returns in the last five years, and an astonishing 5,02,470% surge over the past 26 years, transforming from a once penny stock into the world’s most valuable company.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
October 29, 2025, 15:26 IST
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