Nvidia is the first company in the world worth over $5 trillion

On Wednesday, Nvidia became the first company in the world whose stock market capitalization exceeded $5 trillion. This is as much as the annual GDP of Germany, which is the third largest economy in the world, and five times more than the GDP of Poland.

The share price of the leading American manufacturer of integrated circuits exceeded $212 during Wednesday's trading session, which was an increase of over 5%. against Tuesday. This was enough for Nvidia to break another record. This is the result of hopes for an agreement during Donald Trump's Thursday summit with Xi Jinping, which would result in consent to the sale of Nvidia products in China. Even though the price fell slightly during the day, the company's capitalization remained above USD 5 trillion.

As Reuters noted, Nvidia's stunning share price surge in recent months has cemented its position at the center of the global artificial intelligence boom, and Wednesday's milestone underscores the company's rapid transformation from a niche graphics chip designer to a pillar of the global AI industry. Various media unanimously emphasize that Nvidia has clearly taken the lead in the technological race.

Nvidia was established in 1993, and only after 30 years – in June 2023, to be precise – its capitalization exceeded USD 1 trillion. It has since quintupled, reaching $4 trillion just three months ago. The increase in Nvidia's share price is clearly related to the boom in artificial intelligence. Since ChatGPT was unveiled in 2022, Nvidia's stock has increased 12 times. Nvidia supplies chips to leading artificial intelligence companies, including OpenAI, the creator of ChatGPT.

Nvidia's value currently exceeds the GDP of every country in the world except the United States and China. That's also 50 percent. more than the total capitalization of the companies making up the FTSE100, i.e. the 100 largest companies listed on the London Stock Exchange. It is worth 19 times more than the largest of them, the pharmaceutical giant AstraZeneca.

Nvidia has also clearly left other companies from the Big Tech group behind – the valuations of the next two, Apple and Microsoft, reached $4 trillion this week, the value of Alphabet is $3.3 trillion, Amazon – $2.4 trillion, and Meta – $1.9 trillion. (PAP)

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