US technology giant NVIDIA has become the first company in corporate history to briefly surpass a market capitalisation of $5 trillion, driven by soaring global demand for its artificial intelligence chips.
The milestone was reached in October as Nvidia’s dominance in the artificial intelligence sector continued to strengthen amid rapid expansion of AI-driven data centres worldwide. The company’s advanced processors have become central to the development of generative AI systems.
According to research by International Data Corporation (IDC), Nvidia now controls 81 percent of the global market for data centre chips by revenue, reinforcing its position as the industry leader.
Nvidia’s stock has surged sharply since November 2022, when OpenAI released its ChatGPT chatbot, accelerating global investment in AI infrastructure. Since then, Nvidia’s share price has increased nearly 12-fold, reflecting sustained investor confidence.
The company’s financial performance has also exceeded expectations. During the October quarter, Nvidia reported more than a 60 percent year-on-year increase in both revenue and profit, significantly outperforming Wall Street forecasts.
Analysts say continued demand for AI computing power is likely to remain a key driver of Nvidia’s growth, as major technology firms expand their investments in artificial intelligence and high-performance data centres.
