Nvidia Corp. has made history, officially becoming the first company to surpass a $5 trillion market capitalization, solidifying its role as the undisputed leader of the global AI revolution.

The milestone came on Wednesday, as Nvidia shares surged up to 5.2% to $211.47, just four months after the company breached the $4 trillion mark. The rally has been fueled by an aggressive series of AI-focused deals spearheaded by CEO Jensen Huang, including partnerships with Nokia, Samsung Electronics, and Hyundai Motor Group.

Fueling the AI Frenzy

Nvidia’s meteoric rise is more than just a reflection of market momentum — it’s a direct result of the company’s dominance in powering artificial intelligence infrastructure worldwide.

So far in 2025, Nvidia stock has gained 50%, contributing nearly one-fifth of the S&P 500’s 17% growth this year. For comparison, Microsoft and Apple — both hovering around the $4 trillion valuation mark — trail Nvidia in both growth and market impact.

Political Winds & Global Deals

The latest boost came after former U.S. President Donald Trump suggested he would soon speak with Chinese President Xi Jinping regarding Nvidia’s powerful Blackwell chips. Trump has previously said he would consider allowing Nvidia to export a downgraded version of Blackwell to China — news that investors greeted with enthusiasm.

Meanwhile, Huang unveiled an ambitious plan to link quantum computers with Nvidia’s AI chips, and projects that the new hardware lineup could generate $500 billion in revenue.

Analyst Sentiment: Overwhelmingly Bullish

Of the 80 analysts tracked by Bloomberg, over 90% rate Nvidia stock as a buy. The average price target is $225.48, suggesting upside potential of ~7%. Only one analyst, Jay Goldberg from Seaport Global Securities, maintains a sell rating.

Valuation-wise, Nvidia is currently trading at 33.8x forward earnings — below its five-year average (≈39x) and close to the Philadelphia Semiconductor Index’s multiple of 29x.

Nvidia’s historic $5 trillion valuation reflects more than just market optimism — it underscores how central the company has become to the future of artificial intelligence, computing, and the broader tech ecosystem. While questions about sustainability remain, for now, Nvidia is riding high at the peak of the AI wave.