Nvidia achieved a historic milestone on Wednesday, becoming the first company in the world to reach a $5 trillion market capitalization, propelled by a powerful rally that has cemented its position at the center of the global artificial intelligence revolution.

The achievement marks the company’s rapid evolution from a specialized graphics chip designer into the backbone of the AI industry — turning CEO Jensen Huang into a Silicon Valley icon and making Nvidia’s advanced chips a focal point of the tech rivalry between the US and China.

Since the launch of ChatGPT in 2022, Nvidia’s stock has surged more than twelvefold, fueling record highs in the S&P 500 and reviving debate over whether inflated tech valuations could lead to a new financial bubble.

The milestone comes just three months after Nvidia crossed the $4 trillion mark, lifting its market value to roughly half that of the entire European Stoxx 600 index — and surpassing the total capitalization of the global cryptocurrency market.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, which holds shares in Nvidia, said: “Reaching a $5 trillion market cap isn’t just symbolic — it’s a clear statement that Nvidia has evolved from a chipmaker into a creator of an entire industry.”

He added: “The market still underestimates the scale of Nvidia’s opportunity. It remains one of the best ways to invest in the AI wave.”

Nvidia’s shares, based in Santa Clara, California, rose 4.6% on Wednesday following a series of announcements reinforcing its dominance in AI.

On Tuesday, CEO Jensen Huang revealed $500 billion in new chip orders and announced plans to build seven supercomputers for the US government.

Meanwhile, President Donald Trump is expected to discuss Nvidia’s “Blackwell” AI chip with Chinese President Xi Jinping on Thursday, as the component has become a flashpoint in the ongoing technology export dispute between Washington and Beijing.

Surging shares boost Huang’s fortune

At current prices, Huang’s stake in Nvidia is valued at about $179.2 billion, according to regulatory filings and Reuters calculations, making him the world’s eighth-richest person, per Forbes.

Born in Taiwan and raised in the US from age nine, Huang has led the company since co-founding it in 1993. Under his leadership, Nvidia’s H100 and Blackwell processors have become the backbone of large language models powering tools like ChatGPT and Elon Musk’s xAI ventures.

While Nvidia remains the clear leader in AI, other tech giants such as Apple and Microsoft have also surpassed $4 trillion in market capitalization in recent months.

Analysts say the rally reflects strong investor confidence in sustained AI spending, though some warn that current valuations may not be sustainable.

Matthew Tuttle, CEO of Tuttle Capital Management, cautioned: “The current AI expansion is driven by a handful of dominant players financing each other to expand capacity. The moment investors start demanding cash returns instead of promises of growth, the cycle could abruptly stop.”

Tech megacaps such as Nvidia, Apple, and Microsoft now dominate the S&P 500 and Nasdaq 100, giving them outsized influence over global markets. Nvidia is scheduled to report its quarterly earnings on November 19.

Nvidia as a geopolitical bargaining chip

The company’s dominance in chipmaking has drawn increased regulatory scrutiny worldwide, as US export restrictions on advanced semiconductors make Nvidia a central instrument in Washington’s strategy to curb China’s access to AI technology.

Bob O’Donnell of TECHnalysis Research said, “Nvidia has done a remarkable job crafting its narrative in Washington to gain political support. It’s touching on all the hottest, most strategic tech issues of the day.”

At its developers’ conference on Tuesday, Huang balanced commercial announcements with geopolitical messaging — praising Trump’s “America First” policy for accelerating domestic tech investment, while warning that cutting China off from Nvidia’s ecosystem could exclude half of the world’s AI developers.

Despite rising competition from AMD and several well-funded startups, Nvidia remains the preferred and dominant supplier in high-performance computing.

Nvidia’s vision for the AI era

The company announced plans to release a blueprint for building massive “gigascale” data centers — dubbed “AI factories” — using its chips and software, a concept being heavily invested in by Oracle, Microsoft, and Google.

Nvidia said its new AI research hub in Virginia will employ this architecture, while it also unveiled partnerships with T-Mobile and Nokia to develop AI-driven 6G telecom towers using its new “Aerial RAN Computer.”

The technology aims to deliver faster, more robust wireless connectivity for smartphones, smart devices, and eventually robotics.

Huang declared: “Most of today’s wireless technologies depend on foreign components — that must change. We have a real opportunity to lead this shift with 6G.”

Nvidia is also working with Uber to help produce 100,000 self-driving cars by 2027 using its DriveOS autonomous platform, enabling broader adoption of robotaxis across the US.

It is partnering with Palantir to provide AI computing capabilities for enterprise automation, while Lowe’s will use Nvidia’s systems to digitally replicate its global supply chain to identify efficiency gains.

In collaboration with Siemens, Nvidia unveiled digital-twin technology for robotic factories, allowing companies to design and operate digital replicas of real-world manufacturing environments — a step expected to address labor shortages in industrial production.

Additionally, Nvidia will help the US Department of Energy build seven new quantum supercomputers using its AI chips to advance scientific research.

Describing AI as “the next industrial revolution,” Nvidia said global adoption remains in its early stages — a view echoed by MIT researchers, who noted that most companies implementing AI tools have yet to see meaningful returns.

A pillar of America’s tech leadership drive

Hosting its event in Washington was a strategic choice. Jensen Huang has become a key figure in President Trump’s campaign to make the US the global leader in artificial intelligence — a theme that dominated the conference’s keynote, which featured a special entrance for members of Congress.

Huang said: “The first thing President Trump asked me to do was bring manufacturing back to America — it’s vital for national security.”

He confirmed that Nvidia’s Blackwell AI chips are now in full-scale production in Arizona, though final assembly still occurs abroad.

Huang is expected to meet President Trump in South Korea this week during the APEC summit.

In August, Nvidia asked the White House for clarification on resuming sales of advanced chips to China after agreeing earlier this year to remit 15% of its Chinese revenues to the US government.

Huang revealed Tuesday that Washington has approved resumed sales but claimed that Beijing is now delaying them. He concluded his keynote with a nod to Trump’s slogan: “Thank you all for helping make America great again.”

Oil prices rose on Wednesday, supported by a sharp drop in US crude inventories and growing optimism ahead of the highly anticipated trade summit between US President Donald Trump and Chinese President Xi Jinping.

Markets were buoyed by hopes of a breakthrough in trade relations between Washington and Beijing, as the two leaders are scheduled to meet in a bilateral summit in South Korea on Thursday.

The US Energy Information Administration (EIA) reported that crude inventories fell by 6.9 million barrels to 416.0 million barrels last week, far exceeding market expectations of a 0.9 million-barrel decline.

Gasoline stocks dropped by 5.9 million barrels to 210.7 million barrels, while distillate inventories — which include heating oil and diesel — declined by 3.4 million barrels to 112.2 million barrels.

At the close of trading, Brent crude futures for December delivery rose by 0.81%, or 52 cents, to settle at $64.92 per barrel.

Meanwhile, US West Texas Intermediate (WTI) crude futures for December delivery gained 0.55%, or 33 cents, to close at $60.48 per barrel.

The Federal Reserve announced on Wednesday its decision to cut the benchmark interest rate by 25 basis points, from 4.25% to 4.00%, in a move that was largely in line with analysts’ expectations.

Nickel prices edged lower on Wednesday as the US dollar strengthened against most major currencies, weighed down by a bearish outlook from a major American bank regarding metal prices for the coming year.

In a research note released this month, Goldman Sachs projected that copper prices would remain range-bound between $10,000 and $11,000 per metric ton through 2026–2027, citing a market surplus despite a still-positive long-term outlook for industrial metals.

The bank highlighted three key factors likely to limit copper’s upside momentum:

1. Chinese buyers are expected to reduce purchases if prices exceed $11,000 per ton, as seen in Q2 2024.

2. A buildup in US inventories could swiftly rebalance the market should the London Metal Exchange (LME) price spreads narrow.

3. Overestimation of data center–related demand, which may prove weaker than initially projected.

Goldman: Indonesian producer margins to steer nickel’s direction

Regarding the nickel market, Goldman Sachs said Indonesian producer profit margins must compress further to slow supply growth and counter the ongoing surplus.

The bank forecast nickel prices to decline by around 6%, reaching $14,500 per metric ton by December 2026.

Aluminum market set for surplus, with prices returning to current levels only by 2030

Goldman Sachs also expects a surplus in the aluminum market as Indonesian supply begins ramping up by mid-2026.

The bank projects aluminum prices to hover around $2,350 per ton in Q4 2026, with no return to current price levels expected before 2030.

China to become a net zinc exporter by 2026

Goldman Sachs said China is likely to shift from being a net importer to a net exporter of zinc by 2026, driven by increased domestic production.

“We see higher Chinese output turning the country’s zinc balance from deficit to surplus, while ex-China markets move into deficit. To balance the global market, Chinese producers must be incentivized to export,” the bank wrote.

Cobalt supported by tighter supply and new Congo export quotas

In the cobalt market, Goldman Sachs noted that new export quotas imposed by the Democratic Republic of the Congo — which accounts for about 70% of global supply — are expected to create a market deficit in 2026, supporting prices amid tighter supply conditions.

Lithium prices to remain subdued through 2026 amid persistent surplus

The bank also predicted that lithium prices will remain depressed for longer, averaging $8,900 per ton in 2026, as the ongoing supply glut keeps the market oversupplied.

Meanwhile, the US Dollar Index rose 0.2% to 98.8 by 15:35 GMT, hitting a session high of 99.01 and a low of 98.6.

As for spot trading, nickel prices fell 0.7% to $15,130 per ton by 15:46 GMT.