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Nvidia has become the pioneering $5 trillion company, only three months following the Silicon Valley chipmaker initially surpassed the $4 trillion market value barrier.

By contrast, Nvidia’s worth exceeds the GDP of Japan, India, and the UK, according to the International Monetary Fund (IMF).

Shortly after American exchanges opened this Wednesday, Nvidia’s stock touched over $207 with 24.3bn shares outstanding, putting its market capitalization at $5.05tn.

Ravenous appetite for Nvidia’s processors, seen as the most cutting edge in powering artificial intelligence products and software, is the main reason that the company’s stock price has increased so rapidly from the start of last year.

The wider US stock market has reached new peaks this week, buoyed up by massive funding in artificial intelligence.

Major Announcements and Partnerships

On Tuesday, Nvidia’s CEO, Jensen Huang, disclosed $500bn in processor contracts.

Nvidia also unveiled a partnership with the ride-hailing service on autonomous taxis and a $1bn investment in Nokia, with the two planning to cooperate on next-generation networks.

Furthermore, Nvidia is teaming with the American energy agency to build multiple AI supercomputers.

Last month, Nvidia announced that it will invest $100bn in OpenAI as within a joint effort that will add at least 10 gigawatts of AI computing facilities to boost the computing power for the developer of the AI assistant ChatGPT.

In August, Huang mentioned Nvidia was discussing a potential new processor tailored to the Chinese market with the former U.S. government.

Donald Trump remarked on Air Force One that he would speak with the Chinese president, Xi Jinping, about Nvidia’s technology later this week.

AI Boom and Market Impact

Hitting the new benchmark highlights the transformation being unleashed by an artificial intelligence craze that is widely viewed as the most significant change in technology after the Apple co-founder Steve Jobs introduced the original smartphone 18 years ago.

The tech giant rode the iPhone’s success to emerge as the first publicly traded company to be valued at $1tn, $2tn and eventually, $3tn.

Risks and Warnings

But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month pointing out the increasing danger that equity values pumped up by the AI boom could burst.

IMF’s managing director has issued comparable warnings.