Nvidia nears $5 trn valuation as AI chip boom fuels global market surge

Nvidia's shares surged 3.5 per cent to $208.05 in premarket trading, signalling that it could surpass the milestone once regular trading begins

Nvidia Corp. is on the verge of becoming the world’s first $5 trillion company, as Chief Executive Officer Jensen Huang’s rapid expansion through new deals continues to fuel the global artificial intelligence (AI) boom, Bloomberg reported.

 

The company’s shares surged 3.5 per cent to $208.05 in premarket trading, signalling that it could surpass the milestone once regular trading begins. The chipmaker reached a $4 trillion valuation just four months ago, and its momentum has strengthened with fresh supply agreements with global giants such as Nokia Oyj, Samsung Electronics Co. and Hyundai Motor Group.

 

Nvidia stock has gained nearly 50 per cent in 2025, contributing almost one-fifth of the S&P 500 Index’s 17 per cent advance this year. In comparison, Microsoft and Apple, each valued at around $4 trillion, trail behind in market capitalisation, Bloomberg reported.

 

 

On Monday, CEO Jensen Huang announced new collaborations. He said Nvidia’s latest generation of chips could generate up to $500 billion in revenue. The company also introduced a new platform designed to connect quantum computers with its AI processors, a step Huang called “the next big frontier” for computing.   

 

Wall Street backs Nvidia

 

Wall Street analysts continue to back Nvidia’s growth story. Of the 80 analysts tracked by Bloomberg, over 90 per cent rate the stock as a “buy”. The average price target stands at $223.68, implying another 11 per cent upside.

 

Currently, Nvidia trades at 34 times estimated earnings, slightly below its five-year average of 39.

 

However, some analysts warn that Nvidia’s meteoric rise, up 1,275 per cent since late 2022, may not be sustainable. Bloomberg quoted Dan Eye, chief investment officer at Fort Pitt Capital Group, as saying that competitors such as Advanced Micro Devices Inc. and Broadcom Inc. could capture a portion of Nvidia’s market share.