Nvidia, the heavyweight chipmaker, made headlines on Tuesday as it was on the brink of becoming the first company worth $5 trillion. The company announced that it had secured $500 billion in bookings for its artificial intelligence processors and revealed plans to construct seven new supercomputers for the U.S. Department of Energy.
Following the announcement, Nvidia’s stock soared nearly 5%, adding over $230 billion in market value. This surge brought the company’s total value to $4.89 trillion, briefly touching $4.94 trillion at its peak. CEO Jensen Huang delivered a keynote address at a developer conference in the U.S. capital, where he lauded the policy of U.S. President Donald Trump while unveiling new products and partnerships.
Nvidia is a key player in the global expansion of AI technology, forging agreements while navigating the complexities of the U.S.-China trade war. The outcome of this trade dispute may determine which country’s technology dominates the global landscape. The company’s stock has seen a remarkable 50% increase in 2025, reaching a market capitalization above $4 trillion for the first time in July.
In comparison, Microsoft, the world’s second most valuable company, experienced a 2% rise in stock, pushing its market capitalization to $4.03 trillion. Microsoft, in collaboration with OpenAI, announced a restructuring deal that allows the ChatGPT creator to transition away from its nonprofit origins and potentially pursue a public listing.
The supercomputers being developed by Nvidia for the Energy Department will play a crucial role in supporting the U.S. nuclear weapons arsenal. The largest supercomputer, in partnership with Oracle, will incorporate 100,000 of Nvidia’s high-end Blackwell AI chips.
As Nvidia continues to lead the charge in AI innovation, its strategic partnerships and cutting-edge technology position it as a frontrunner in the tech industry. The company’s relentless pursuit of excellence and commitment to pushing the boundaries of AI technology solidify its status as a market leader.
(Source: Reuters – Reporting by Noel Randewich; Editing by Richard Chang)
