Nvidia shares are at record prices, the company's capitalization exceeded USD 5 trillion

Shares closed at an all-time high on Friday, pushing the company's market capitalization to more than $5 trillion for the first time, as investors pile into the AI ​​chip market ahead of the tech giants' earnings announcement next week.

During Friday's session, Nvidia shares rose 4.3% to close at $208.27. This is the company's first record price since October 2025.

Nvidia shares have collectively increased more than 14-fold since the end of 2022, driven by growing demand for artificial intelligence services and models. Nvidia GPUs are used by Google, Microsoft, Meta and Amazon, as well as modelers OpenAI and Anthropic.

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Friday's rally in Nvidia shares was sparked by better-than-expected financial results from chipmaker Intel, released Thursday evening. Intel shares rose 24% on Friday, their best performance since 1987.

Next week, on Wednesday, the following companies will show their results for the first three months of 2026: Meta, Amazon, Microsoft and Alphabet, and Apple will present them on Thursday. Nvidia itself will boast about its achievements for the first quarter only on May 20.

As CNBC reports, investors have been pulling out of large-cap technology stocks recently as oil prices have surged due to the war in Iran and resulting supply chain disruptions. However, a wide range of technologies have recently gained popularity again, and demand for AI infrastructure shows no signs of slowing down.

The Nasdaq index rose 15% in April, heading for its best month since April 2020.

The chip giant's steady rise in shares comes at a time of explosive growth in demand for artificial intelligence as companies such as Meta, Amazon, Google and Microsoft try to snap up silicon from Nvidia.

Alphabet, a major Nvidia customer, has announced new chips that will continue Nvidia's offering when they become available to cloud customers later this year.

In April, Nvidia announced a new family of open-source models called Ising that aim to accelerate the adoption of quantum computing.

At last month's annual GTC conference, CEO Jensen Huang announced that Nvidia will place more than $1 trillion in orders for its GPUs by 2027, including current Blackwell chips and next-generation Vera Rubin GPUs.

Nvidia's data center revenues increased by 75%. year to year and currently constitute as much as 88%. its activities. This is a sharp increase compared to five years ago, when games were the company's main source of revenue.

Now Nvidia can't produce AI chips fast enough. At the GTC trade fair in March, Nvidia presented new types of artificial intelligence chips, including a language processing unit, built on technology acquired in December through the acquisition of the startup Groq for $20 billion.

Nvidia also unveiled a standalone set of the latest Vera CPUs at GTC as agent-based artificial intelligence changes computing needs and causes demand for processors to surge again.

Meta is the first major customer to use Nvidia's standalone processors. As part of the wide-ranging deal announced in February, Meta committed to deploying millions of Nvidia chips in dozens of its data centers around the world. (PAP Business)

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