Nvidia Shatters Market Records with AI-Driven Rally

Nvidia became the first company to reach a $5 trillion market value, driven by its key role in the AI sector. Its growth has sparked debates about potential tech bubbles and geopolitical tensions, particularly between the U.S. and China, over AI chip sales and export controls.

Nvidia achieved a historic milestone on Wednesday by becoming the first company to attain a market value of $5 trillion. This impressive growth highlights Nvidia's pivotal role in the burgeoning global artificial intelligence industry, transforming from a specialized graphics-chip designer to a fundamental component of AI infrastructure.

This milestone arrives a mere three months after Nvidia surpassed the $4 trillion mark, raising concerns about possibly inflated tech valuations and igniting debates on an impending bubble in the sector. With AI-driven optimism bolstering the S&P 500, Nvidia's performance outstrips the combined value of the entirety of the cryptocurrency market.

CEO Jensen Huang's leadership and strategic moves, including unveiling $500 billion in AI chip orders and plans for constructing seven supercomputers for the U.S. government, have galvanized investor confidence, though tensions persist regarding the geopolitical implications of chip technology export controls.

(With inputs from agencies.)