Nvidia's Stock Hits New Heights Amid AI Boom

Nvidia has hit a major milestone, becoming the first public company to reach a $5 trillion market cap. This surge is largely due to the ongoing AI craze, with Nvidia's GPUs in high demand for data centers and AI applications. The company's shares rose over 5. 6% on a recent Wednesday, reaching $212. 19. This increase came after news that U. S. President Donald Trump planned to discuss Nvidia's Blackwell chips with Chinese President Xi Jinping. Investors are also excited about Nvidia CEO Jensen Huang's recent comments. He mentioned that the company expects $500 billion in AI chip sales. Additionally, Nvidia is building seven new supercomputers for the U. S. in areas like security, energy, and science. These projects will require thousands of Nvidia GPUs. The company also announced a $1 billion investment in Nokia. This investment will help launch AI-native 5G-Advanced and 6G networks on Nvidia platforms. Nvidia's stock has surged more than 50% this year. This growth is driven by the high demand for its GPUs, which are essential for training large language models and other AI tasks. The scarcity of these GPUs and their crucial role in data centers are key factors in Nvidia's success. The tech industry has seen a significant boost this year. Investors are optimistic about AI's potential to revolutionize various sectors, similar to how the internet changed business. Over the past year, there have been several multibillion-dollar deals. Many of these deals involve Nvidia and aim to develop data centers and infrastructure for AI models. In September, Nvidia announced a plan to invest up to $100 billion in OpenAI. Both companies aim to deploy 10GW worth of Nvidia systems to power OpenAI's systems.