Nvidia Becomes First Company with $5 Trillion Valuation Amid AI Demand Surge

Today, Nvidia became the first publicly traded company to reach a market capitalization of $5 trillion. This milestone was achieved just 3.5 months after its valuation surpassed $4 trillion. Over the past week, Nvidia's stock has risen by 14.5%, driven by high demand for its graphics processing units (GPUs) and the ability to sell cutting-edge chips in China.

Currently, there is a ban in the U.S. on the sale of Nvidia AI chips, Blackwell, to China, while the country has also restricted the import of certain Nvidia chips due to national security concerns. Donald Trump announced that on October 30, he will discuss Nvidia's "super-duper chip" with Chinese President Xi Jinping, raising hopes for a change in the situation.

Nvidia chips are crucial for developing and training large language AI models, and nearly all major tech companies are working on their AI products. For instance, Apple is building its AI infrastructure to support the Apple Intelligence project and potential future opportunities in artificial intelligence. While Apple uses its own Apple Silicon chips, it has been reported that the company is also investing in Nvidia server technologies.

Nvidia's growth outpaces that of other tech giants like Apple and Microsoft. However, Apple has also made significant strides, notably reaching a valuation of $4 trillion for the first time yesterday. Following this, its stock price dipped slightly, but the company remains close to achieving that milestone again.

Apple is releasing its own artificial intelligence servers, with the first shipments starting this month. However, it is unlikely that Apple will compete with Nvidia in the server market, as their solutions are primarily focused on internal use.