On Wednesday, October 29, 2025, Nvidia’s stock price rose by more than 4%, making this technology company the first tech giant to surpass a market cap of $5 trillion.
The chip manufacturer’s stock price soared above $210, surpassing the $205.76 mark required to reach a $5 trillion market cap. Nvidia’s stock has accumulated over a 50% increase so far this year.
The huge potential of artificial intelligence, recent deals and partnerships with some of the largest AI and corporate giants in the US, as well as CEO Huang Renxun’s speech in Washington D.C. on Tuesday, all contributed to the rise in stock prices this week.
On Tuesday, Nvidia’s CEO Huang Renxun stated that Nvidia is expected to receive $500 billion in orders for AI chips and announced plans to build seven new supercomputers for the US Department of Energy.
Additionally, Nvidia announced on Tuesday a $10 billion acquisition of Nokia’s shares, and a strategic partnership with Nokia to jointly develop next-generation 6G cellular technology.
On Wednesday, US President Trump stated that he will discuss Nvidia’s Blackwell AI processor with Chinese leader Xi Jinping, further boosting Nvidia’s stocks.
According to data from the Dow Jones Market, Nvidia’s current market cap now exceeds the sum of AMD, Arm Holdings, ASML, Broadcom, Intel, Lam Research, Micron, Qualcomm, and TSMC, and even surpasses multiple sectors within the S&P 500 index, including utilities, industrials, and essentials.
Furthermore, driven by AI transactions, the US stock market reached historical highs on Tuesday. The rise in tech stocks boosted major indices, with the market cap of Apple and Microsoft exceeding $4 trillion each.
On Wednesday, the continued rise in tech stocks led the S&P 500 index to increase for the fifth consecutive trading day, potentially setting a record for the longest monthly consecutive gain since 2021. Despite concerns that the narrowing gains in tech stocks could endanger the sustainability of the upward momentum, confidence in the prospects of AI continues to drive up tech stocks, ultimately boosting the benchmark index of the US stock market.
Earlier this month, the International Monetary Fund and the Bank of England became the latest financial institutions to issue warnings, stating that if investor interest in AI wanes, global stock markets could face difficulties.
Cathie Wood, CEO of Ark Invest, mentioned on Tuesday that AI valuations might face a “reality check” soon, but she dismissed concerns about an AI bubble.
Some of the world’s largest tech companies are set to release earnings reports on Wednesday and Thursday, with traders closely tracking these companies’ expectations for AI spending and closely monitoring when returns on these investments may materialize.
Microsoft, Alphabet, and Meta Platforms will be the first to release earnings reports on Wednesday afternoon, followed closely by Amazon and Apple on Thursday.