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yesterday

Nvidia Hits $5 Trillion, Cementing Its Grip on AI and Indexes

Passive index flows helped propel a rapid climb driven by Nvidia’s central role in AI infrastructure.

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GYEONGJU, SOUTH KOREA - OCTOBER 31: Jensen Huang, NVIDIA founder and CEO, has a Q&A session at a press conference during the APEC CEO summit on October 31, 2025 in Gyeongju, South Korea. Leaders and delegates from 21 APEC economies are gathering in South Korea for the upcoming APEC summit, where talks are expected to center on trade, supply chain stability, and technology cooperation. The meetings come amid heightened regional tensions and efforts to boost growth through closer economic integration, and as U.S. President Trump tours Asia on a six-day visit. (Photo by Woohae Cho/Getty Images)
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Overview

  • The company became the first to reach a $5 trillion market value, doing so only 112 days after crossing $4 trillion.
  • Its GPUs are the default engines for training and running generative AI, with reporting that it holds roughly 90% share across key AI accelerator markets.
  • Passive investing has amplified the move, with Nvidia now more than 8% of the S&P 500 and about 5% of the MSCI All World Index.
  • CEO Jensen Huang showcased the company’s footprint at GTC D.C. as a short U.S.–China trade truce lifted sentiment even as export controls continue to limit China sales.
  • Analysts flag vulnerabilities including vendor‑financing ties and the risk that customers’ heavy AI spending may not pay off, citing OpenAI’s reported $5 billion operating loss and Meta’s plan to spend upwards of $70 billion on AI.