Nvidia’s $5.05 trillion valuation is built on a strategy of aggressive expansion into every corner of future technology. The chipmaker, which became the world’s first $5T firm on Wednesday, has just announced a series of deals that go far beyond its core AI chip business.
The company is moving into autonomous driving with a new partnership with Uber on robotaxis. It is also helping build the backbone of national research, working with the US Department ofEnergy to build seven new AI supercomputers.
Nvidia is also looking to the future of communication, investing $1 billion in Nokia to co-develop 6G technology. This is all happening as its core business is booming, with a $500 billion order book and a $100 billion investment in OpenAI.
This expansion has helped drive the stock up 25% in just three months. It has also won praise from President Donald Trump, a shareholder.
However, this rapid diversification into unproven markets is also fueling bubble fears. Critics, including the Bank of England, are concerned that the market is rewarding hype over proven revenue, especially as many corporate AI pilots are reportedly failing.