NVIDIA market cap soared to an unprecedented $5 trillion milestone on Wednesday, making it the first company in history to achieve this remarkable valuation. The chipmaker has cemented its place as a dominant force in the technology sector after surging 5% to close at a record high. It now accounts for 8.3% of the index’s total weighting and approximately 20% of the gains made by the S&P 500 this year. This historic achievement comes at a time when Nvidia’s stock performance has outpaced Bitcoin, with the S&P 500’s 17% rise year-to-date ahead of BTC’s 16% advance.
The current Nvidia market cap reflects its extraordinary journey from semiconductor manufacturer to AI powerhouse. Consequently, investors and analysts are questioning why the Nvidia market cap is so high, with much of the answer lying in its expansive growth strategy and technological leadership. The company recently announced partnerships with the US Department of Energy to build seven new supercomputers, including one that will utilise 10,000 Blackwell GPUs. Additionally, Nvidia projects $500 billion in GPU sales by the end of 2026, further solidifying its market position. When examining the Nvidia market cap history, this valuation places the company in rarefied air—equivalent to approximately 2 Amazons, 25 Disney’s, or 50 Nike’s.
Nvidia Hits £5 Trillion Market Cap Amid AI Boom
On 29 October 2025, Nvidia achieved a historic breakthrough as shares climbed 3.4% to AUD 317.80, making it the first company ever to exceed a £5 trillion valuation. This remarkable milestone comes just three months after Nvidia crossed the £4 trillion threshold, highlighting the extraordinary pace of its market ascent.
What Pushed Nvidia Past the £5T Threshold?
The final push past £5 trillion came after CEO Jensen Huang announced plans to build seven supercomputers for the US government. Moreover, Huang revealed the company expects AUD 764.50 billion in AI chip orders through the end of next year. The company also disclosed a strategic AUD 1.53 billion investment in Nokia to develop next-generation 6G technology. These announcements drove investor confidence to new heights, propelling Nvidia’s share price to record levels.
How Nvidia’s Valuation Compares to Past Highs
Nvidia market cap represents an astonishing evolution from its recent history. The company’s value has:
- Grown from approximately AUD 1.53 trillion just over two years ago
- Risen by more than 1,500% over the last five years
- Gained over 50% in 2025 alone
- Expanded sevenfold since OpenAI’s ChatGPT triggered the AI arms race in late 2022
In perspective, Nvidia’s market cap is now greater than the GDP of every country on earth except the United States and China. Furthermore, its valuation exceeds the combined market cap of all its major competitors, including AMD, Intel, Broadcom, TSMC, and others.
Nvidia’s Market Cap 2025
Nvidia’s dominant position in the AI chip market underpins its astronomical valuation. With over 90% of the market for AI chips under its control, the company’s processors are crucial to the worldwide AI revolution. Notably, spending on data centres filled with Nvidia chips accounted for 92% of US GDP growth in the first half of 2025.
The chipmaker now comprises more than 8% of the S&P 500 index, demonstrating its outsized influence on the broader market. At the same time, tech giants like Microsoft and Oracle are pouring hundreds of billions into building AI data centres, with spending projected to reach AUD 839.42 billion this year – more than double the 2023 figure. This massive infrastructure investment primarily benefits Nvidia as the essential hardware provider.
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AI Partnerships and Product Launches Drive Growth
Behind the Nvidia market cap growth lies an aggressive expansion strategy through strategic partnerships. At its recent GTC event in Washington, DC, the company unveiled collaborations with Palantir, Oracle, Cisco, T-Mobile, Samsung, Hyundai, Eli Lilly, and Uber.
Nvidia Collaborates with Palantir, Samsung, and Oracle
Nvidia and Palantir Technologies are developing an integrated technology stack for operational AI, combining Palantir’s Ontology system with Nvidia’s GPU-accelerated data processing capabilities. This partnership aims to transform enterprise data into decision intelligence for retailers, healthcare providers, financial services, and the public sector. Oracle Corporation, alongside the US Department of Energy, are working with Nvidia to construct DOE’s largest AI supercomputer for scientific discovery.
New Supercomputers and 6G initiatives Unveiled
In a significant move toward next-generation wireless technology, Nvidia announced America’s first AI-native wireless stack for 6G. The system integrates the Nvidia AI Aerial platform with 5G RAN software from ODC, featuring user plane function and 5G core software from Cisco. First demonstrations included a complete user-to-user phone call over the network and groundbreaking 6G applications developed at Nvidia’s Santa Clara campus.
Nvidia’s £1B Investment in Nokia and Healthcare Tech
Nvidia is investing approximately £1B (AUD 1.53 billion) for a 2.9% stake in Nokia, purchasing 166.4 million shares at AUD 9.19 each. This non-exclusive partnership focuses on developing AI-native 6G networks and next-generation radio access systems. Simultaneously, Nvidia’s collaboration with Eli Lilly aims to accelerate drug discovery using generative AI through its BioNeMo platform.
How Nvidia’s AI Chips Power Robotics and Cloud Services
Expanding beyond traditional partnerships, Nvidia announced collaborations with Siemens, FANUC, Foxconn Fii, TSMC, Toyota, Amazon Robotics, and others to adopt Nvidia’s Omniverse, Isaac, Jetson, and IGX Thor platforms. These platforms extend AI from virtual training environments to real-world robotics and smart-factory automation. Additionally, Nvidia is partnering with Uber Technologies to deploy a global fleet of over 100,000 robotaxis worldwide in the next few years.
Nvidia Outpaces Bitcoin and Major Indices in 2025
The chipmaker’s historic valuation has put it miles ahead of both traditional market indices and cryptocurrencies in 2025. Nvidia’s stock ended October up 3% at AUD 316.56, cementing its market value at an extraordinary AUD 7.69 trillion.
Nvidia Market Cap vs Bitcoin: Who’s Leading?
Nvidia’s valuation now exceeds Bitcoin’s market cap by over 2.25 times. Indeed, as Nvidia approached the AUD 7.64 trillion milestone, Bitcoin struggled against macroeconomic headwinds. Despite Bitcoin’s 23% year-to-date gain, this performance pales in comparison to Nvidia’s remarkable 50% surge during the same period.
S&P 500 and Nasdaq Gains Driven by Nvidia
The tech giant now comprises approximately 8% of the S&P 500 SPDR ETF, exerting significant influence over broader market performance. The Nasdaq Composite registered another record closing high, gaining 0.55% to 23,958.47 points, primarily boosted by Nvidia’s momentum. Meanwhile, the S&P 500 has outperformed Bitcoin this year, delivering a return of +18.52% compared to Bitcoin’s lacklustre performance.
Bitcoin Lags Behind Gold and Equities
Surprisingly, gold has outperformed Bitcoin in 2025, rising 38% year-to-date, compared to Bitcoin’s 30% increase. Throughout 2025, gold has maintained its traditional role as a hedge against uncertainty, delivering a 50% return that outpaced Bitcoin’s performance. Nevertheless, Bitcoin’s long-term performance against money supply growth remains superior to gold, which, adjusting for M2 growth, remains below its 2011 peak.
Tech and Investor Implications
The £5 trillion valuation milestone reached by Nvidia significantly reshapes the investment landscape for both tech companies and global investors.
Nvidia’s Weight in the S&P 500 and Global Indices
As of September 2025, Nvidia has become the most significant component in the S&P 500, accounting for 7.2% of the index, and has subsequently grown to over 8%, according to recent data. Since the top five S&P 500 businesses now account for almost 30% of the whole index, this dominance raises the risk of concentration. Primarily, the market’s gains have been fueled by a small group of tech giants aggressively investing in AI, with Nvidia at the forefront.
How Nvidia’s Rise Affects Tech Rivals Like AMD and Intel
Nvidia market cap is currently 27 times larger than Intel’s, illustrating the competitive imbalance. Nonetheless, Nvidia recently invested AUD 7.64 billion in Intel’s common stock, establishing a partnership to develop custom data centre and PC products. This collaboration essentially reinforces Nvidia’s dominance while keeping rivals’ competing accelerated computing strategies out of the spotlight.
Investor Sentiment and Future Stock Projections
Currently, analysts remain bullish on Nvidia, with 43 out of 48 rating it as a Buy or Strong Buy. The average 12-month price target stands around AUD 277.16, although valuation concerns persist. By 2030, the stock could potentially reach between AUD 1324.11 and AUD 1550.53 if the company maintains its market leadership.
Conclusion – Nvidia Market Cap
Nvidia’s achievement of a £5 trillion market capitalisation marks a watershed moment for both the company and global markets. The primary reason for this extraordinary milestone is the chipmaker’s commanding 90% market share in the AI hardware industry. Consequently, the company has evolved from a semiconductor manufacturer into an AI powerhouse, driving global technological advancements.
Throughout 2025, Nvidia has demonstrated exceptional growth compared to traditional investment vehicles. The company significantly outperformed Bitcoin, gold, and major market indices, delivering approximately 50% returns while reshaping the composition of the S&P 500. Additionally, Nvidia’s strategic partnerships with tech giants, government agencies, and research institutions have further cemented its market leadership.
Undoubtedly, Nvidia’s journey from semiconductor specialist to trillion-dollar AI titan represents one of the most remarkable corporate transformations in recent history. The company’s continued innovation, strategic investments, and market dominance suggest its influence across industries and markets will likely expand rather than diminish in the coming years. Nvidia has effectively become not just a tech company but rather a fundamental pillar of the global AI infrastructure – a position that appears increasingly unassailable as digital transformation accelerates worldwide.
What factors contributed to the Nvidia market cap?
The Nvidia market cap surge was driven by its dominance in the AI chip market, strategic partnerships with tech giants, and significant investments in next-generation technologies like 6G networks and supercomputers.
How does Nvidia’s performance compare to other tech companies and cryptocurrencies?
Nvidia has outperformed both traditional market indices and cryptocurrencies in 2025, with its stock price rising by approximately 50% year-to-date, surpassing the gains of Bitcoin, gold, and major stock indices.
What impact does Nvidia’s growth have on the broader stock market?
Nvidia now comprises over 8% of the S&P 500 index, significantly influencing overall market performance. The company’s success has led to increased concentration risk, with the top five tech companies representing nearly 30% of the entire index.
