Nvidia has reached a significant milestone by becoming the first company to achieve a market valuation of $5 trillion. This achievement comes just three months after the Silicon Valley chipmaker surpassed the $4 trillion mark. The surge in Nvidia's stock price is largely attributed to the increasing demand for its chips, driven by the rapid growth of artificial intelligence technology.

On Wednesday, Nvidia's shares peaked at $207.86 in early trading, with 24.3 billion shares outstanding, resulting in a market capitalization of approximately $5.05 trillion. This valuation exceeds the GDP of major economies, including India, Japan, and the United Kingdom, according to the International Monetary Fund.

The rise of Nvidia is seen as part of a broader trend in the tech industry, reminiscent of Apple's ascent following the launch of the iPhone 18 years ago. Apple became the first publicly traded company to reach valuations of $1 trillion, $2 trillion, and $3 trillion. However, experts have raised concerns about a potential AI bubble. Officials from the Bank of England recently warned about the risks associated with inflated tech stock prices, while the head of the International Monetary Fund echoed similar sentiments.

Nvidia's CEO, Jensen Huang, announced on Tuesday that the company has secured $500 billion in chip orders. Additionally, Nvidia is collaborating with the Department of Energy to develop seven new AI supercomputers. The company is also investing $100 billion in OpenAI, which will enhance the computing capabilities for the owner of the ChatGPT chatbot.

In a move to expand its technological reach, Nvidia has partnered with Uber to work on robotaxi initiatives and has committed $1 billion to Nokia to advance 6G technology. Furthermore, discussions are ongoing regarding a new computer chip designed for China, with President Donald Trump indicating plans to speak with Chinese President Xi Jinping about Nvidia's developments.

As the AI sector continues to evolve, Nvidia's rapid growth highlights the transformative impact of artificial intelligence on the technology landscape.