Nvidia hits record $5 trillion mark as CEO dismisses AI bubble concerns

In a groundbreaking achievement, Nvidia has become the first company to surpass a market capitalization of $5 trillion. This milestone was announced following a keynote address by CEO Jensen Huang at the GTC conference in Washington, DC, where he revealed a staggering $500 billion in AI chip orders and plans to construct seven supercomputers for the U.S. government. This remarkable ascent comes just three months after Nvidia crossed the $4 trillion threshold in July, positioning the company ahead of tech titans like Apple and Microsoft in terms of market value. However, this rapid growth has reignited fears regarding a potential AI investment bubble. Since the launch of ChatGPT in late 2022, Nvidia’s stock has surged nearly 12-fold, contributing significantly to the S&P 500's record highs. Following the announcement at the GTC conference, Nvidia's shares jumped by 4.6 percent. During a discussion on Bloomberg Television, Huang addressed concerns about inflated valuations, stating, "I don’t believe we’re in an AI bubble. All of these different AI models we’re using—we’re using plenty of services and paying happily to do it." He projected that Nvidia will ship 20 million units of its latest chips, a significant increase from the 4 million units sold of the previous Hopper generation throughout its lifespan. The $500 billion figure represents total orders for the company’s Blackwell and Rubin processors through the end of 2026, although Huang clarified that these projections do not account for potential sales to China. Despite the current euphoria surrounding Nvidia, there remains an undercurrent of caution. Many analysts have expressed concerns that the rapid expansion of AI investments may lead to market enthusiasm outpacing the technology's ability to generate immediate economic returns. Matthew Tuttle, CEO of Tuttle Capital Management, warned, "AI’s current expansion relies on a few dominant players financing each other’s capacity. The moment investors start demanding cash flow returns instead of capacity announcements, some of these flywheels could seize."