The chipmaker’s milestone comes one day after Apple scored a $4 trillion market value.
Shares of chip titan Nvidia jumped about 5 percent on Oct. 29, making it the first company to achieve a $5 trillion market cap milestone.
The latest accomplishment for the tech giant reflects the company’s meteoric ascent in recent years amid the wider artificial intelligence-fueled boom in global financial markets.
Nvidia’s recent gains were driven by CEO Jensen Huang’s projection of $500 billion in AI chip orders. He also confirmed that it will construct seven new supercomputers for the U.S. government.
The stock rose 4.5 percent at the start of the trading session, to around $210 per share. This year, Nvidia has rallied more than 51 percent.
With the Federal Reserve overwhelmingly expected to cut interest rates at the year’s final two meetings of the policy-making Federal Open Market Committee (FOMC), stocks of Nvidia and other tech behemoths will remain attractive in an easing environment, says market research firm Reflexivity.
“These growth-oriented companies benefit from lower discount rates on future earnings and cheaper capital costs,” Reflexivity said in a note emailed to The Epoch Times.
Investors are betting that the U.S. central bank will lower a key borrowing rate by a quarter point at the October and December FOMC policy meetings.
Apple Hits $4 Trillion
Nvidia’s new milestone comes one day after iPhone maker Apple reached $4 trillion in value.
Shares of Apple have increased in recent weeks as iPhone 17 models, released last month, are selling better than older models, according to industry estimates. Apple will provide the official sales figures during the Oct. 30 earnings report.
The stock rose 0.5 percent, to approximately $270 a share, adding to its year-to-date gain of nearly 11 percent.
The success of Apple, Nvidia, and other so-called Magnificent 7 companies has contributed to the broader market’s record run since the springtime selloff.
U.S. stocks rose to record levels midweek, bolstered by various tech names and the Fed’s expected rate cut.
The blue-chip Dow Jones Industrial Average and the tech-heavy Nasdaq Composite Index each advanced about 0.6 percent. The broader S&P 500 Index ticked up 0.3 percent.
All three leading U.S. stock market benchmark indexes enjoyed new record intraday highs—one day after scoring fresh all-time highs for the major averages.
By Andrew Moran
