Nvidia goes down in history today as first company to reach a capitalization of market of 5 trillion dollars, extending the powerful rally that has consolidated its position at the center of the artificial intelligence boom. Shares of the Santa Clara, California-based company, which had closed up 5% on Wall Street, are jumped by a further 3,1% in the negotiations after hours after the CEO Jensen Huang announced orders for 500 billion of dollars of artificial intelligence chips and plans to build seven supercomputers for the U.S. government.
This morning S&P 500 and Nasdaq futures they indicated a rise, awaiting the results of three companies of the "Magnificent Seven" (Microsoft, Alphabet, and Meta) and the interest rate cut expected by the Federal Reserve. Shares of the semiconductor giant subsequently rose more than 3% as trading opened, driven by the boom in artificial intelligence.
Il 5 trillion milestone marks Nvidia's transformation from a niche graphics chip maker to the backbone of the global artificial intelligence industry, analysts surveyed by Reutersovercoming Apple, Microsoft and Alfaphabet Google and turning Huang into a Silicon Valley icon. Such capitalization means that the Nvidia's market value alone exceeds that of theentire cryptocurrency market and is approximately equal to the half of the total value of the pan-European Stoxx 600 indexNvidia had reached the previous milestone, that of a market capitalization of 4 trillion, last July. Apple and Microsoft have exceeded 4.000 billion of dollars in market value.
Nvidia also announced yesterday theentry into Nokia's capital, the telephone network software company, with a investment of 1 billion dollars. In exchange for the shares, Nvidia will have a 2,9% stake. Nvidia chips will be used for speed up Nokia software for 5G and 6G networks and Nvidia will explore ways to use the technology Nokia data center in their AI infrastructure.
Nvidia's rise as a pivot of geopolitics
Analysts say Nvidia's surge reflects the confidence in continued spending in artificial intelligence, although some warn of the risk of overheated ratings. Its massive weighting The company's relative position in the S&P 500 and Nasdaq 100 indexes gives it a disproportionate share of global markets, while its high valuation raises expectations and leaves little room for disappointment. It will be crucial to read the details of its quarterly the next 19 November.
It is precisely Nvidia's dominance that has made it a pawn fundamental in the Washington strategy time to limit China's access to artificial intelligence technology, so much so that the US has started restrizioni atexport of advanced chips“Nvidia has clearly taken its story to Washington and gained the favor of the U.S. government,” said Bob O'Donnell of TECHnalysis Research. “They've managed to touch on most of the most interesting and influential topics in the tech world.”
Yesterday, at the developer conference, Huang had to walk a tight geopolitical tightrope. On the one hand, Huang had praised “America First” policies Trump's efforts to accelerate domestic technology investments. On the other hand, he warned that excluding China from the Nvidia ecosystem could limit the United States' access to half of the world's AI developers. His rivals, such as Advanced Micro Devices and several startups, are trying to challenge Nvidia's dominance in high-end AI chips, even though it remains the industry's first choice for now. H100 and Blackwell processors Nvidia's models power most of the largest language models, which underpin tools like ChatGPT by OpenAI and xAI by Elon Musk.
(Last updated at 15.00pm)
