Nvidia has become the first company in history to reach a market valuation of $5 trillion, surpassing the GDP of most countries.
Once mainly known for gaming graphics cards, Nvidia has transformed into a major supplier for artificial-intelligence infrastructure. The firm recently announced bookings of around $500 billion for its next-generation AI chips and plans to build seven supercomputers for the US Department of Energy, Reuters reported.
This rapid growth has pushed the company's shares up roughly 50 per cent in 2025.
With a $5 trillion market cap, Nvidia now surpasses the GDPs of virtually all countries except the United States, China, and Germany. For example, Japan's GDP is around $4.28 trillion, and India's is $4.13 trillion, as per Forbes, meaning Nvidia's valuation alone eclipses these major economies.
Other tech giants aren't far behind. Apple Inc. recently crossed the $4 trillion mark in market value, joining Nvidia and Microsoft Corporation in the ultra-elite "multi-trillion dollar" club.
The market capitalisations of these tech giants now exceed the GDPs of advanced economies such as the United Kingdom, France, Italy, and Canada.
Even Tesla, valued at about $1.45 trillion, now ranks above several major national economies, including Indonesia ($1.44 trillion), the Netherlands ($1.32 trillion), Saudi Arabia ($1.27 trillion), and Poland ($1.04 trillion).
A company's market valuation does not reflect its actual annual earnings or cash flow; rather, it represents investor confidence and expectations of future growth, expectations that can change rapidly. Nvidia, for example, continues to navigate US-China export restrictions that could impact its sales, Reuters reported.
The company's market capitalisation also surpasses the combined value of Saudi Aramco, Berkshire Hathaway, and Tesla, and even outstrips the entire UK stock market, estimated at $4.2 trillion.
The surge was propelled by several key developments. Nvidia's shares rose 5.6 per cent to over $212 after news of strong sales in China and a potential policy shift on chip exports. The company also announced a $1 billion investment in Nokia alongside a partnership to develop "AI-native" 5G and 6G networks.
