Nvidia Approaches $5 Trillion Valuation Amid AI Chip Market Surge
The rapid expansion of Nvidia Corporation through new agreements that are fuelling the global increase in artificial intelligence is propelling the firm toward being the first company in the world to reach $5 trillion, as per reports. Chief Executive Officer Jensen Huang is the driving force behind this quick expansion. The shares of the company had a huge increase of 3.5%, reaching a price of $208.05 during premarket trading. This indicates that there is a probability that the company’s shares will surpass this threshold when regular trading begins. It had only been four months since the chipmaker had reached a valuation of $4 trillion, and its momentum had been further bolstered by new supply deals with important worldwide corporations such as Nokia Oyj, Samsung Electronics Co., and Hyundai Motor Group.
During the year 2025, the shares of Nvidia have had a tremendous increase of about fifty percent, which has made a substantial contribution to the total rise of seventeen percent that the S&P 500 Index has experienced this year. This increase represents approximately one-fifth of the whole growth. According to a report, Microsoft and Apple lose ground in terms of market capitalization, despite the fact that both companies have valuations that are close to $4 trillion. Jensen Huang, the CEO, made the announcement of new alliances on Monday. According to him, the most recent generation of processors available from Nvidia has the potential to create up to $500 billion in revenue. In a move that Huang referred to as “the next big frontier” for computing, the business has created a new platform that is intended to combine quantum computers with its artificial intelligence processors.
The narrative of Nvidia’s expansion continues to receive support from analysts. There are eighty analysts, and more than ninety percent of them consider the stock to be a “buy.” As of right now, the average price objective is $223.68, which indicates that there is a possibility of a growth of 11 percent. At the moment, Nvidia is valued at 34 times its predicted earnings, which is a ratio that is marginally lower than its average valuation over the past five years, which is 39.
However, there are some analysts who are concerned that Nvidia’s exceptional climb, which has increased by 1,275 percent since the end of 2022, could not be able to be maintained. Dan Eye stated that competitors like Advanced Micro Devices and Broadcom have the ability to seize a piece of Nvidia’s market share. Eye made this statement.
