• Nvidia has achieved a historic market valuation of $5 trillion, the first company to do so.
• CEO Jensen Huang announced $500 billion in AI chip orders and plans for seven supercomputers for the U.S. government.
• The company’s stock rose significantly due to a booming demand for its AI chips, bolstered by key partnerships.
• Concerns about a potential AI bubble are emerging as regulatory scrutiny increases from global authorities.
• Nvidia's success reflects a major shift in the tech industry, placing immense value on AI technology.

Nvidia made history on Wednesday by becoming the first company to reach a market valuation of $5 trillion, only three months after hitting the $4 trillion mark. This leap illustrates the company’s remarkable transformation from a niche graphics chip maker to a central player in the global artificial intelligence (AI) revolution, with shares soaring due to increasing demand for its chips. CEO Jensen Huang's vision has turned him into a Silicon Valley icon, underlining Nvidia's pivotal role in the rapidly evolving tech landscape, according to Reuters and India Times.

Nvidia's stock surged by over 5%, resulting in a market capitalization of approximately $5.05 trillion. The recent increase in share value has been driven by an astonishing appetite for AI chips, underpinned by key partnerships with companies such as Uber and Nokia. Analysts have compared Nvidia's chips to "the new oil" of the tech ecosystem, reflecting a sentiment that they are foundational to the ongoing AI boom, according to HuffPost, India Times, and South China Morning Post.

Huang disclosed that the company is set to build seven new supercomputers for the U.S. government, and secure $500 billion in AI chip orders over the next year. This monumental growth has propelled Nvidia's share price significantly since the introduction of #ChatGPT in 2022, which has been crucial for driving NVIDIA’s market presence. Despite looming concerns about market bubbles and potential overvaluations, investor confidence remains strong in Nvidia's capabilities and its role at the forefront of AI technology, as highlighted by analysts from CBS News, BBC, and Al Jazeera.

However, Nvidia's extraordinary rise has not gone unnoticed by regulatory bodies, with U.S. export controls placing Nvidia’s advanced chips under scrutiny in the context of competition with China. This leads to concerns about the sustainability of such rapid growth in an environment of potential geopolitical tensions. Analysts suggest that, while Nvidia's dominance seems unwavering, challenges from competitors are evident, especially as larger AI investments intertwine among tech firms, as discussed by LA Times and India Times.