NVIDIA becomes the first company in history to be worth $5 trillion

NVIDIA has become the first publicly traded company on Earth to reach a $5 trillion valuation, and it was only three months ago that it was worth $4 trillion.

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According to data provided by the World Bank, the value of NVIDIA exceeds the total Gross Domestic Product (GDP) of every country on Earth besides the United States and China, following the company's share price on Wednesday opening up by more than 3%. NVIDIA's skyrocketing valuation can be attributed to the booming AI market, with tech companies around the world looking to invest as much as possible into the emerging software, and to achieve a sophisticated AI, companies need the infrastructure to operate it. That is where NVIDIA comes in.

NVIDIA's AI GPUs have become such a sought-after product that they have become the subject of international trade restrictions, geopolitical footballs between competing countries, and even spawned a black market where the GPUs are banned from being sold. All of this is part of the greater race between countries and companies to create the Artificial General Intelligence (AGI), the world's most sophisticated AI software.

NVIDIA has been at the forefront of the emerging AI market, and it's certainly reaped the rewards, with the company's $5 trillion valuation now exceeding the combined market values of all of its competitors, such as AMD, Intel, Broadcom, Micron, TSMC, ASML, Qualcomm, and Arm Holdings. Furthermore, NVIDIA stock has increased by 1,500% over the last five years, and 50% in the last year alone.