Nvidia has made history by becoming the first company to achieve a market capitalisation of $5 trillion. This milestone was reached on October 29, just three months after the company surpassed the $4 trillion mark. The surge in Nvidia's stock, which rose by over 5% to $211.41, is largely attributed to the increasing demand for AI chips and strategic partnerships that enhance its market position.

The company's current market value of $5.05 trillion now exceeds the combined GDP of Japan, the UK, and India, according to the International Monetary Fund. Nvidia's rapid growth reflects the booming AI sector, which is seen as a transformative force in technology, comparable to the impact of the iPhone launch in 2007.

Nvidia's CEO, Jensen Huang, recently announced chip orders worth $500 billion, indicating strong demand for its products in both enterprise and government sectors. The company has also formed a partnership with Uber to develop robotaxis and invested $1 billion in Nokia to collaborate on 6G technology. Additionally, Nvidia is working with the US Department of Energy to establish seven new AI supercomputers.

Despite its success, concerns about potential market bubbles are emerging. The Bank of England has warned that the soaring valuations of AI-related tech stocks could lead to instability. Huang's announcements come amid ongoing discussions about Nvidia's chip technology with the Trump administration, particularly regarding its implications for China.

Nvidia's stock has skyrocketed since the launch of ChatGPT in 2022, with shares increasing twelvefold. Analysts believe that while Nvidia currently leads the AI market, competitors are also striving to develop their own solutions. However, many experts agree that Nvidia's dominance is likely to continue in the foreseeable future.

As Nvidia prepares to report its quarterly earnings on November 19, its influence on global markets remains significant, especially as tech stocks play a crucial role in major indices like the S&P 500 and Nasdaq 100. The company's journey from a niche graphics-chip designer to a key player in the AI industry underscores its pivotal role in shaping the future of technology.