California-based tech giant, Nvidia, became the first company to surpass $5 trillion market value threshold, its shares rising more than 4 per cent on Wednesday.
History was made on the Wall Street shortly after the company’s CEO, Jensen Huang, said Nvidia expects $500 billion in AI chip orders, and announced plans to build seven new supercomputers for the US Department of Energy.
It also said on Tuesday it is taking a $1 billion stake in Nokia as part of a strategic partnership with the networking company to develop next-generation 6G cellular technology.
In this year alone, Nvidia has seen its stocks climb 50 per cent, having come a long way from its initial days as a niche video game processor.
Also Read: Apple hits $4 trillion in market valuation, Nvidia nears $5-tr
The US stocks have been on a steady rise this past week, climbing to record highs on Tuesday on the back of an Artificial Intelligence (AI) boom amidst fears over a bubble, particularly because AI-driven spending has been the reason for Big Tech companies Apple and Microsoft to reach a market value of more than $4 trillion after their shares rose.
The International Monetary Fund and the Bank of England have been the latest financial institutions to warn that global stock markets could face trouble if investor interest for AI turns sour.
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