Nvidia has set a new record. The chip developer has become the first publicly traded company in the world to reach a market capitalization of $5 trillion. This growth reflects the global demand for artificial intelligence – and the crucial role that Nvidia's chips play in it. Within just a few years, Nvidia has transformed itself from a graphics card manufacturer into one of the most important technology companies of our time.
Just three and a half months after Nvidia surpassed the $4 trillion mark, the next milestone has been reached: a company valuation of $5 trillion. The share price has risen by 14.5 percent in the last week. This is due to high demand for the GPUs, which have become indispensable for AI applications. At the same time, there is growing hope that Nvidia will soon be allowed to sell its latest chips in China again.
Currently, the US has imposed an export ban prohibiting Nvidia from selling its Blackwell AI chips to China. Conversely, China has also restricted the import of certain Nvidia products due to security concerns. However, a political shift may be imminent: Donald Trump announced that he will meet with Chinese President Xi Jinping on October 30 to discuss Nvidia's so-called "super-duper chip." A potential outcome of this meeting could reopen access to the Chinese market.
Nvidia as a key driver of AI development
Nvidia's GPUs are the foundation of most modern AI systems. Almost every major technology company uses them to train and run models. The current AI boom would be virtually inconceivable without the computing power of Nvidia chips. The Blackwell generation is currently among the most powerful chips on the market. It delivers enormous performance with comparatively high energy efficiency and is crucial for training large language models, image generation, and autonomous systems.
Nvidia also benefits from the fact that the company not only supplies hardware but has built a complete ecosystem – consisting of chips, software platforms, and cloud services. This allows companies to develop AI applications faster and more efficiently. This has put Nvidia in a leading position, while competitors like AMD and Intel still have catching up to do.
Political tensions as a growth factor and a risk
Trade relations between the US and China remain a source of uncertainty. The American government is primarily concerned with protecting its technological lead in the field of artificial intelligence. Therefore, certain high-performance chips from Nvidia are currently prohibited from being exported to China. At the same time, China has responded with its own restrictions, banning the import of some Nvidia products for security reasons.
Trump plans to discuss with Xi Jinping whether these regulations can be relaxed. The focus is on the cutting-edge Blackwell chips, considered the industry standard for high-performance AI. If Nvidia regains access to the Chinese market, it could significantly boost revenue and further solidify the company's global dominance.
Competition and technological developments
While Nvidia continues to grow, other major tech companies are trying to build their own AI infrastructures. Apple, in particular, has made progress in recent months. Shortly before the release of its quarterly results, Apple reached a market capitalization of $4 trillion – a milestone the company could soon reach again after a slight dip in its share price.
Apple is currently launching its own servers with integrated artificial intelligence. The first devices have already been shipped, but are intended exclusively for internal use. This does not create direct competition for Nvidia. Nevertheless, the move demonstrates that Apple intends to make AI a central component of its product strategy in the long term. Reports also indicate that Apple has invested in Nvidia's server technology to complement its own systems.
Market position and economic importance
Nvidia has overtaken Apple, Microsoft, and other tech giants in growth. The company is now at the heart of the global AI economy. Every major technology company—whether from the US, Europe, or Asia—uses Nvidia's hardware for AI development, research, or cloud services.
Demand for GPUs continues to rise rapidly. Analysts expect this trend to persist for years, as AI models become increasingly complex and require more computing power. The entire industry's dependence on Nvidia is now so significant that even minor changes in production or supply policies can have a considerable impact on markets and companies.
Nvidia as a symbol of the global AI age
Nvidia has become the world's most valuable company in record time. Reaching the $5 trillion mark is not only a symbol of economic success, but also of the transformation of the technology industry. Artificial intelligence is driving this transformation, and Nvidia provides the necessary hardware to make it possible.
The company's future now depends in part on political decisions, especially on the development of relations between the US and China. Regardless, Nvidia remains a key player in the global AI industry. Hardly any other company is currently shaping technological development as profoundly. The best products for you: Our Amazon storefront offers a wide selection of accessories, including those for HomeKit. (Image: Shutterstock / Stock all)
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