Nvidia Nears Historic $5 Trillion Valuation After $500 Billion AI Chip Bookings

Nvidia Corp. is on the brink of a historic milestone, with its market capitalization inching closer to $5 trillion after the U.S. chip giant revealed a staggering $500 billion in bookings for its artificial intelligence (AI) processors and unveiled plans to build seven new supercomputers for the U.S. Department of Energy, according to an exclusive report by Reuters.

Shares of the Santa Clara-based company soared nearly 5% on Tuesday, adding more than $230 billion to its market value. Nvidia briefly touched a record $4.94 trillion before closing at $4.89 trillion, keeping it within striking distance of the $5 trillion mark — a threshold no other company has yet reached.

The announcement came during CEO Jensen Huang’s keynote address at a developer conference in Washington, where he unveiled new AI products and strategic partnerships. Huang also lauded policy initiatives under U.S. President Donald Trump, even as Nvidia continues to navigate a complex U.S.-China trade environment that could shape the global technology landscape for years to come.

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Nvidia’s meteoric rise has made it the undisputed leader of the AI boom, supplying the high-performance chips that power everything from data centers to generative AI platforms. Its shares have already climbed about 50% this year, building on an extraordinary rally that saw the company’s valuation cross $4 trillion for the first time in July.

Among its latest projects, Nvidia will partner with Oracle to construct the largest of the new Energy Department supercomputers, equipped with 100,000 of its flagship Blackwell AI chips. The systems are expected to bolster U.S. national security initiatives, including nuclear research and weapons development.

Meanwhile, Microsoft — the world’s second-most valuable company — gained 2% to reach a $4.03 trillion valuation. The tech major and OpenAI also announced a restructuring deal that could pave the way for ChatGPT’s parent to transition from its nonprofit origins toward a potential public listing.