Nvidia has become the first company in history to reach a $5 trillion valuation, cementing its status as the defining winner of the artificial intelligence (AI) boom.

The American chipmaker’s shares jumped 5.6% to more than $212 on Wednesday, pushing its market value beyond the GDP of virtually all countries, except the United States (US) and China.

The milestone caps a meteoric rise from a $1 trillion valuation in 2023, powered by surging demand for Nvidia’s AI chips, which underpin systems developed by firms like OpenAI and Oracle.

CEO Jensen Huang announced $500 billion in AI chip orders expected through next year.

The company’s value has grown more than 50% this year, buoyed by renewed access to China after President Donald Trump lifted a US ban on advanced chip sales. Yet warnings of an AI bubble persist, with the International Monetary Fund and Bank of England cautioning against inflated valuations even as Wall Street’s AI-fuelled rally shows no sign of slowing.