The $5 trillion valuation reached by Nvidia on Wednesday is more than a stock market record; it signals the arrival of a new AI economy. This “tectonic shift,” seen as the biggest since the iPhone, has crowned the chipmaker as its first $5 trillion company.
Just as Apple’s $1T, $2T, and $3T milestones were built on the iPhone, Nvidia’s $5.05T valuation is built on its AI processors. The company’s value has accelerated at a stunning pace, adding $1 trillion in just three months, as the world scrambles to build AI infrastructure.
Nvidia is at the center of this new economy. It has a $500 billion order book, a $100 billion partnership with OpenAI to build datacenters, a deal with Uber for robotaxis, and a $1 billion investment in Nokia for 6G.
This shift has the backing of President Donald Trump, who owns Nvidia shares and is pushing for sales to China.
However, this new AI economy is also facing its first major test: a bubble warning. The Bank of England and the IMF are concerned about inflated stock prices. Unlike the iPhone’s clear revenues, critics note that “nearly all AI pilot programs in businesses fail,” suggesting this new economy may be built on a shaky foundation.