Nvidia is close to becoming the first company in the world to reach a market value of five trillion dollars. The company’s shares rose more than three per cent in pre market trading after its chief executive announced five hundred billion dollars in artificial intelligence chip orders and plans to build seven supercomputers for the United States Government.
The company is based in Santa Clara California and is now at the centre of the global artificial intelligence industry. It has moved ahead of Apple, Microsoft and Alphabet in market value. Nvidia has grown from focusing on graphics chips to becoming a major supplier for the future of artificial intelligence.
If Nvidia reaches the five trillion dollar mark its market value will be greater than the entire cryptocurrency market. It would also be equal to around half the total value of six hundred of the largest companies in Europe.
In July the company crossed four trillion dollars in valuation which shows a level of growth that is rarely seen in global markets. One analyst said “In many ways, everything that could have gone right for the firm has gone right over the last … twenty four hours.”
However some experts warn that the current value of the company may be difficult to justify if growth slows. Nvidia has a large share in major stock indexes which means it has a strong impact on markets around the world. High expectations also mean that any setback could lead to sharp reactions from investors.
The company’s rise has also led to more attention from regulators. Export limits on advanced chips from the United States have made Nvidia a key part of the technology competition between Washington and Beijing.
Nvidia continues to lead the high end chip market used for training and running large language models and other artificial intelligence technologies. The company will announce its quarterly financial results in November.
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