Silicon Valley, October 29, 2025 — In a historic leap that cements its dominance in the global technology landscape, Nvidia Corporation (NASDAQ: NVDA) has become the first company in history to reach a $5 trillion market capitalization. The milestone came as investors reacted enthusiastically to former U.S. President Donald Trump’s remarks hinting at a potential softening of semiconductor export restrictions to China.
Shares of Nvidia surged nearly 5% in early trading on Wednesday, pushing the stock to an all-time high and lifting its valuation beyond $5 trillion — a figure greater than the GDPs of several major nations, including India and the United Kingdom. The rally underscores Nvidia’s position as the undisputed leader of the artificial intelligence (AI) revolution, as well as the company’s extraordinary pace of financial growth.
A Record Year for Nvidia
The company’s rise is backed by staggering financial results. For the fiscal year 2025, Nvidia reported revenue of $130.5 billion, more than double the previous year’s total. Net income soared 145% year-on-year to $72.9 billion, reflecting the explosive global demand for its GPUs, which power data centers, AI training clusters, and supercomputers.
In the second quarter of fiscal 2026, Nvidia continued to defy expectations, posting revenue of $46.7 billion, up 56% compared to the same period last year. Net income climbed to $26.4 billion, while earnings per share rose to $1.08 from $0.76 in the previous quarter. The company’s gross margin remained strong at 72.4%, despite ongoing restrictions on AI chip sales to China.
Nvidia also rewarded shareholders handsomely, returning over $24 billion through share buybacks and dividends in the first half of 2025. Its board recently authorized an additional $60 billion stock repurchase plan — one of the largest in corporate history.
Trump’s Promise Sparks Investor Optimism
The latest stock surge followed Trump’s statement that he would “review and rebalance” U.S. semiconductor trade policies if re-elected. He specifically mentioned the need to restore “fair and open access” for American companies like Nvidia to sell AI chips to China.
Such remarks have been welcomed by investors who see potential relief from the Biden-era export restrictions that severely limited Nvidia’s sales of advanced processors like the H100 and Blackwell series to Chinese companies. The easing of these curbs could reopen a multi-billion-dollar market for Nvidia, which previously derived nearly 20% of its revenue from China.
AI’s Crown Jewel
Nvidia’s meteoric rise reflects not only political developments but also its unrivaled position in the AI ecosystem. Its GPUs — now standard equipment in data centers run by Microsoft, Amazon, Google, and Meta — are essential for training large language models such as ChatGPT and Gemini.
Under the leadership of CEO Jensen Huang, Nvidia has evolved from a niche graphics card maker into a foundational pillar of modern computing. Analysts describe the company as “the oil supplier of the AI age,” fueling everything from autonomous vehicles to medical research and robotics.
Geopolitics and the Road Ahead
While the market is euphoric, some analysts caution that Nvidia’s valuation — now higher than the combined worth of several major tech giants — could face volatility. “Nvidia is priced for perfection,” said one Wall Street strategist. “Any delay in policy changes or slowdown in AI infrastructure spending could trigger short-term corrections.”
Still, the broader narrative remains overwhelmingly positive. The potential reopening of trade with China could further accelerate Nvidia’s growth trajectory, while its continuous innovation in AI hardware and software ecosystems gives it a commanding lead over rivals like AMD and Intel.
A Defining Moment for the Tech Industry
Nvidia’s achievement marks a watershed for the global stock market. It signals the arrival of a new economic era — one driven not by oil or manufacturing, but by artificial intelligence and computing power. As the company steps into the $5 trillion club, it does so as both a technological pioneer and a geopolitical force.
Whether Trump’s promise materializes or not, one fact is clear: Nvidia has already redefined what is possible for a 21st-century technology company. Its rise from a gaming chip designer to the world’s most valuable corporation is nothing short of historic.
