Nvidia hits $5T market cap on AI deals
Nvidia shares climb as new partnerships and potential Blackwell access in China pushed valuation to $5 trillion.
Nvidia rallied in U.S. trading, lifting the chip designer’s value to over $5 trillion. The advance followed fresh AI partnerships and renewed talk of potential access to China for its next-generation Blackwell processors.
At its GTC event in Washington, Nvidia demonstrated a system to connect quantum computers, expanded its collaboration with Uber, and prepared new contracts to supply AI chips to Samsung Electronics and Hyundai Motor Group. In parallel, Donald Trump indicated he expects to speak with China’s Xi Jinping about the Blackwell chip, prompting investor speculation on future sales.
The stock is up about 50% in 2025, adding roughly $1.6 trillion in market value. Nvidia has contributed nearly one-fifth of the S&P 500’s year-to-date gain and now makes up about 8.3% of the index by weight.
Wall Street remains positive. Of roughly 80 analysts tracking Nvidia, more than 90% carry buy ratings, with Seaport Global Securities’ Jay Goldberg the only sell. The shares trade at under 34 times projected earnings, below their five-year average and near the broader semiconductor group’s multiple.
Nvidia remains the dominant supplier of AI accelerators used to train and run generative AI systems, with industry estimates placing its market share above 90%.
“A $5 trillion market cap would have been unimaginable a few years ago, especially getting here this quickly,” observed Keith Lerner, chief investment officer and chief market strategist at Truist Advisory Services.
Dan Eye, chief investment officer at Fort Pitt Capital Group, added, “Investors have been taught to look past AI valuations, and if what everyone is betting on with AI comes to fruition, then valuations are probably justified, but certainly some of it might be difficult to live up to.” He pointed to rising competition from Advanced Micro Devices and Broadcom, China’s push to develop its own AI chips, and the potential for profit margins to trend lower over time.
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