Nvidia's 5 Trillion Dollar Success: At the Heart of AI

Nvidia Surpasses $5 Trillion Market Value

Nvidia became the first company to surpass a market value of $5 trillion on Wednesday. This achievement is a concrete indication of rapid growth that places Nvidia at the very center of the global Artificial Intelligence revolution.

The company's shares reached a record high of $209.40 during early trading hours. Nvidia shares have increased by 1,087% since the launch of ChatGPT in November 2022. During this period, the S&P 500 index also rose by 68.9%.

Comments from analysts and investors have been quite striking: Matt Britzman, a senior stock analyst at Hargreaves Lansdown, stated, “Reaching $5 trillion is not only a milestone; it also symbolizes Nvidia’s transformation from a chip maker to a sector creator.” Britzman added, “For investors, shares at this price are still not overly expensive. The market is underestimating the scale of opportunities, and Nvidia continues to be one of the best ways to invest in the Artificial Intelligence theme.”

Kim Forrest, chief investment officer at Bokeh Capital Partners, said, “They have earned this success. The big Artificial Intelligence bubble doesn’t seem to be bursting anytime soon. That’s why Nvidia became a $5 trillion company producing things that support the AI cycle.”

Another factor increasing investor excitement is the rising demand for data centers. Russ Mould, investment director at AJ Bell, commented, “Nvidia increased its market value by $2.5 trillion by the end of 2022 and more than doubled its share value.” Mould noted that this growth could be further strengthened by successes achieved in negotiations related to tariffs and trade tensions.

Michael Brown, senior research strategist at Pepperstone, said, “Everything went well in the last 24 hours. The strategic partnerships announced yesterday and CEO Jensen Huang’s $500 billion business outlook caught investors' attention.”

Arthur R Hogan III, chief market strategist at B. Riley, stated, “This milestone confirms that the chip maker is a distinct winner in this phase of the AI revolution. Nvidia’s valuations are compellingly defensible, and the stock is trading at a valuation of 35 times next 12 months’ earnings estimates.”

Daniela Hathorn, senior market analyst at Capital.com, commented, “The driving factor behind Nvidia is not only market excitement but also a scenario supported by structural growth dynamics. Nvidia is at the center of a capital spending boom focused on artificial intelligence.”

İpek Ozkardeskaya, senior market analyst at Swissquote Bank, highlighted that Nvidia has significant potential for making more deals. “Nvidia is eager to form new partnerships, and its international expansion could alleviate concerns,” she said.