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Nvidia has become the pioneering $5tn company, only three months after this tech leader first broke through the $4 trillion valuation mark.

By contrast, Nvidia’s value is greater than the GDP of Japan, India, and the UK, as reported by IMF data.

Shortly after US stock markets began trading this Wednesday, Nvidia’s stock reached $207.86 with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion.

Strong demand for Nvidia’s chips, regarded as the top-tier in powering artificial intelligence products and software, is the primary driver that the company’s stock price has increased so rapidly from the start of last year.

American equities has reached multiple record highs recently, buoyed up by expansive investment in AI technology.

Key Developments and Partnerships

Earlier this week, Nvidia’s Chief Executive, Jensen Huang, revealed $500bn in chip orders.

The company also unveiled a partnership with Uber on autonomous taxis and a $1 billion funding in Nokia, with the two planning to work together on 6G technology.

Furthermore, Nvidia is teaming with the US Department of Energy to build seven new advanced computing systems.

Last month, Nvidia stated that it will commit $100bn in an AI research organization as part of a joint effort that will add at least 10GW of Nvidia AI datacenters to ramp up the processing capacity for the developer of the AI assistant ChatGPT.

In August, Huang mentioned Nvidia was exploring a prospective computer chip designed for China with the former U.S. government.

Donald Trump remarked on Air Force One that he would discuss with the Chinese president, Xi Jinping, about Nvidia’s technology on Thursday.

AI Boom and Market Impact

Reaching this milestone highlights the upheaval caused by an artificial intelligence craze that is considered the most significant change in the tech sector since the Apple co-founder Steve Jobs introduced the original smartphone nearly two decades back.

The tech giant rode the iPhone’s success to become the initial listed firm to be valued at $1tn, $2 trillion and finally, $3tn.

Potential Concerns

However, worries exist of a possible AI bubble, with officials at the Bank of England earlier this month pointing out the growing risk that equity values driven by the AI boom might collapse.

The head of the IMF has raised a similar alarm.