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Nvidia Hits Record $5.3 Trillion Value as AI Rally Strengthens

Nvidia Hits Record $5.3 Trillion Value as AI Rally Strengthens

Nvidia has reached a new milestone in global markets, with its valuation climbing close to $5.3 trillion after another strong rally in its shares.

The company’s stock rose around 4%, closing at a new all-time high of $216.61 per share, according to reports. The move pushed it to the highest market capitalization ever recorded by a publicly traded firm, strengthening its position at the center of the artificial intelligence boom.

AI Demand Pushes Nvidia to Historic Market Cap

The latest gain reflects investor confidence in the continued demand for AI infrastructure, especially high-performance chips used by cloud providers, data centers and technology companies. Nvidia has become one of the biggest beneficiaries of the rapid expansion of generative AI, as businesses continue to invest heavily in computing capacity.

The rally also supported broader technology sentiment. The surge came during a period of strong momentum for semiconductor stocks, with investors closely watching AI-related companies ahead of major technology earnings.

Its growth highlights how artificial intelligence has reshaped global equity markets. Once best known for graphics processing units used in gaming, Nvidia is now viewed as a critical supplier for AI development. Its chips are widely used to train and run large AI models, making it a key player in the next phase of digital transformation.

However, the record valuation also brings greater scrutiny. Investors are watching whether AI spending can continue at the same pace and whether major technology companies can translate large infrastructure investments into sustainable revenue growth. Any slowdown in AI demand could put pressure on high-growth semiconductor stocks.

Still, the latest market record shows that investor appetite for AI leaders remains strong. As companies accelerate AI adoption across cloud computing, enterprise software, automation and data infrastructure, Nvidia continues to benefit from its dominant role in the semiconductor ecosystem.

For more insights, read more on WORLDEF News.

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Andy Jassy Praised Amazon’s Chips; Criticized NVIDIA with a Rare Swipe

Andy Jassy

Amazon CEO Andy Jassy made a rare swipe at NVIDIA by emphasizing his confidence in Amazon’s chips.

In his annual letter to shareholders, Andy Jassy virtually challenged NVIDIA by praising Amazon’s progress in the field of artificial intelligence chips. Amazon is a customer of NVIDIA; however, it also produces artificial intelligence chips called “Trainium.” The company has made chip deals with OpenAI, Anthropic, and Apple by selling access to Trainium chips via the cloud.

“We Have a Strong Partnership with NVIDIA”

Jassy stated that Amazon’s chip business is “on fire.” He said this demand is part of a shift in which companies are diversifying where they buy their artificial intelligence chips from. Andy Jassy said, “Virtually all AI thus far has been done on NVIDIA chips, but a new shift has started. We have a strong partnership with NVIDIA, will always have customers who choose to run NVIDIA, and we will continue to make AWS the best place to run NVIDIA.”

“Trainium3 Offers 30–40% Better Price-Performance Than the Previous Model”

Jassy said that customers want “better price-performance.” He compared this to Amazon reducing Intel’s dominance in the CPU space with its own chip called Graviton, which it launched in 2018. Saying, “The same story arc is unfolding in AI,” Jassy stated that Amazon’s latest chip, Trainium3, offers “30–40% better price-performance” than the previous model. Jassy noted that the annual revenue run rate of Amazon’s chip business is now over $20 billion. Jassy wrote, “At scale, we expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference.”

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