Nvidia Nears $5 Trillion Valuation as AI Demand Deal Fuel Surge
Nvidia is on the brink of becoming the world’s first company valued at $5 trillion, after revealing a massive wave of new demand for its artificial intelligence processors and plans to build seven advanced supercomputers for the U.S. Department of Energy. The California-based chipmaker announced that it has secured more than $500 billion in bookings for its next generation AI chips, a figure that underscores the unprecedented global appetite for the hardware powering the artificial intelligence boom. The company’s shares surged sharply in after hours trading, pushing its market capitalization to within reach of the historic $5 trillion mark.
Nvidia’s new deal with the U.S. government involves constructing seven AI-driven supercomputers designed to advance scientific research, defense applications and clean energy innovation. The partnership, analysts say, will solidify Nvidia’s position as the cornerstone of America’s AI and high performance computing infrastructure.
CEO Jensen Huang described the surge in demand as a “new industrial revolution,” noting that the company’s chips are now “the engines of intelligence for the world’s digital economy.” The announcement comes as tech giants such as Microsoft, Google and Amazon continue to race to secure Nvidia’s processors to power their expanding AI operations.
Nvidia’s dominance in the AI hardware market has already made it one of the most valuable companies in history, surpassing Apple and Microsoft in year-to-date performance. If the momentum continues, the company could officially cross the $5 trillion threshold within days, a milestone that would redefine the global technology landscape. Analysts say the combination of record breaking chip orders and the U.S. supercomputer project positions Nvidia as not just a technology leader, but a critical player in the geopolitical competition over AI supremacy.