Nvidia's "tenfold stock journey": Three years ago, when ChatGPT was first released, its market value was $400 billion; now, it's the first "five trillion dollar company"!

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Nvidia's market value has officially surpassed the $5 trillion mark, becoming the first company in the world to reach this milestone. Its growth rate and market influence have reached unprecedented levels.

On Wednesday, Nvidia's share price rose by about 3% to $207.16, bringing its market capitalization to $5.03 trillion.

(Nvidia’s market value surpasses $5 trillion)

This figure surpasses the combined market value of its competitors AMD, Arm, ASML, Broadcom, Intel, Lam Research, Qualcomm, and TSMC, and even exceeds the total size of entire sectors in the S&P 500 index such as utilities, industrials, and consumer staples.

In the past six months, Nvidia's stock price has risen by about 90%. Its current size has even exceeded the combined market capitalization of the major stock indexes of Germany, France, and Italy.

Nvidia's stock performance has become a key "barometer" measuring this huge wave of AI-driven demand. The direct catalyst for this latest surge stems from expectations of continued strong sales of its AI chips, as well as optimism regarding sales of its products in the Chinese market.

A Rocket-like Rise in Market Value

Nvidia's market value growth trajectory is truly astonishing.

Three years ago, before generative AI tools like ChatGPT ignited the market, its market capitalization was about $400 billion.

With the launch of ChatGPT, demand for GPUs used to train and run large language models soared. Within a few months after ChatGPT was released, Nvidia's market capitalization broke the $1 trillion mark. Afterwards, its growth continued to accelerate:

November 2022 — $400 billionMay 2023 — $1 trillion;February 2024 — $2 trillion;June 2024 — $3 trillion;July 2025 — $4 trillion;October 2025 — $5 trillion.

(Nvidia’s market value chart over the past two years)

Nvidia's eye-catching growth rate has surpassed those of tech giants Apple and Microsoft, both of which only this week closed above $4 trillion in market value for the first time.

Strong Support from Demand and Orders

The fundamental reason why Nvidia has become the "core" of this round of AI trades is that its designed GPUs are the engines driving the entire artificial intelligence industry. Angelo Zino, Senior Vice President at CFRA Research, said:

They are the cornerstone of the entire AI trade.

Strong demand is directly reflected in order data. WallstreetCN reported that Nvidia revealed its Blackwell chips released last year have shipped 6 million units, with another 14 million on order. At the GTC conference, Jensen Huang predicted:

The company expects total sales to reach $500 billion over the next five quarters.

Analysts at Bernstein pointed out that Jensen Huang's forecast means Nvidia's chip sales in the 2026 calendar year will far exceed $300 billion, while the previous consensus estimate on Wall Street was $258 billion.

This enormous demand comes mainly from large tech companies that are investing heavily to build the data center infrastructure needed to run AI models.

"Bubble" Warnings and a Closer Look at High Valuation

However, surging stock prices have raised concerns about a potential bubble.

Some investors and industry analysts have begun to compare the current rise in AI stocks to the internet bubble at the start of this century. Tech companies are investing hundreds of billions of dollars in data centers and chip development, taking on massive debt, but current revenues are relatively small.

Nvidia’s valuation level has also attracted scrutiny. According to data, the company's share price is about 33 times its expected earnings for next year, while the average price-earnings ratio for the S&P 500 is about 24. David Kotok, co-founder of Cumberland Advisors, warned:

Such an "extraordinary valuation" sets extremely high expectations for the company. It is only justified if margins and profits continue on their current trajectory or even improve.

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