SANTA CLARA COUNTY, Calif. – It’s a massive milestone: Nvidia just became the first publicly traded company to exceed $5 trillion dollars in market value.
“It’s a shockingly large number. But it’s not surprising when you consider how much they were worth before and how successful they’ve become. I mean, this is a company that owns the AI hardware space,” Larry Magid, a tech expert with ConnectSafely said.
Far and away
Why you should care:
The company has no close competitors. By some accounts, Nvidia’s AI chips make up 90 percent of the market, which means anyone betting on the future of AI is coming to them first.
“If any country or any organization or any government would like to be in AI, they must come to Nvidia. They have to knock on the door of Nvidia and that’s actually given strength to an American company at the heart of Silicon Valley,” Ahmed Banafa, a tech expert and engineering professor at San Jose State University said.
The message of American strength was front and center at Nvidia’s GTC conference this week.
“We are manufacturing in America again. It is incredible. The first thing that President Trump asked me for is to bring manufacturing back,” Jensen Huang, president and CEO of Nvidia said.
Nvidia delivered. The company’s Blackwell chips are produced in Arizona.
Also in the works are new partnerships, like 6G phone towers with Nokia, self-driving cars with Uber, and AI supercomputers for the energy department.
They’re also hoping to restart chip sales in China.
“There are actually very few companies that are driving the economy forward. And if you look at the S&P 500, the Magnificent 7, these big tech companies are playing a huge role. And Silicon Valley is the engine. We are the engine that is making America great,” Magid said.
Neighbors
Local perspective:
The majority of the Magnificent 7, are all in Silicon Valley, just a few miles from each other.
The company’s closest competitor, in terms of market value, is nearby Apple, which just this month hit a $4 trillion valuation — a number that was unheard of until Nvidia hit it earlier this year.
“The interesting part of it, is it all happened so fast. I’m telling you that 2026 they’re going to hit $6 trillion dollars. That’s not that far,” Banafa said.
