A $5 Trillion Company: From Utopia to Reality
A company valued at $5 trillion was considered a utopia just a few years ago, but it has become a reality today. The shares of Nvidia have increased by more than 4% today, making the tech giant the first company to cross this symbolic threshold of market capitalization. The stock is trading at over $210, while it was at $13.3 just 5 years ago.
A Winning Strategy
The company is being rewarded for its winning strategy, which has transformed it from a manufacturer of processors for video games to a key player in the wave of artificial intelligence. This new surge comes shortly after the company announced that it expects to receive $500 billion in orders for AI chips, while also announcing the construction of seven new supercomputers for the US government.
Strategic Investment
Meanwhile, Nvidia announced on Tuesday an investment of $1 billion in Nokia, establishing a strategic partnership with the telecommunications company to develop next-generation 6G cellular technology.
A Vertiginous Rally
This vertiginous rally in the US markets comes despite persistent concerns about a possible bubble, particularly since AI-related spending has led to record transactions and valuations. Earlier in the month, the International Monetary Fund and the Bank of England became the latest financial institutions to warn that global stock markets could be threatened if investors' appetite for AI were to cool down. A return to reality would be painful.
Key Points
- Nvidia's market capitalization exceeds $5 trillion
- The company's stock has increased by over 4% today
- Nvidia expects to receive $500 billion in orders for AI chips
- The company is investing $1 billion in Nokia to develop 6G technology
- Global stock markets may be threatened if investors' appetite for AI cools down
