Nvidia Makes History as First Company to Hit $5T Valuation

Nvidia Makes History as First Company to Hit $5T Valuation
Above: Nvidia Corp. CEO Jensen Huang during his keynote at the Nvidia GTC in Washington, D.C., on Oct. 28, 2025. Image copyright: Kent Nishimura/Bloomberg/Getty Images

The Spin

Narrative A

Nvidia hitting $5 trillion cements its dominance in the AI boom that's reshaping the world with unstoppable demand for its chips. Massive orders worth $500 billion and partnerships with giants like OpenAI and the U.S. government guarantee explosive growth ahead. This valuation screams smart investment in a tech revolution that's just revving up.

Narrative B

Nvidia's $5 trillion valuation seems to be driven by an overhyped AI bubble, characterized by circular spending and vague promises that lack tangible cash returns. This frenzy overlooks significant risks, such as export restrictions and competitors diminishing its market lead. Such an inflated price creates the potential for a substantial correction when the hype inevitably collides with reality.

Metaculus Prediction

There is a 95% chance Nvidia will outperform the S&P 500 in 2025, according to the Metaculus prediction community.



The Controversies



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© 2025 Improve the News Foundation.

All rights reserved.

Version 6.17.0