Nvidia poised to hit $5 trillion valuation driven by AI boom

Nvidia is on the edge of making history by becoming the first tech giant to hit a $5 trillion valuation driven by the AI boom.

The stock surged 3.1 percent in premarket trading as Nvidia CEO Jensen Huang made two significant announcements related to AI chips and supercomputers.

Huang announced plans to invest $500 billion in AI chip orders and establish seven supercomputers for the US government.

The milestone will mark the meteoric rise of Nvidia’s as a major backbone of the global AI industry, surpassing Microsoft, Apple, and Alphabet.

After $5 trillion valuation would transcend the value of the entire cryptocurrency market.

In July, the chipmaker company witnessed a valuation of $4 trillion.

According to senior research strategist at Pepperstone, Michael Brown, “In many ways, everything that could have gone right for the firm, has gone right over the last…24 hours.”

As per analysts and experts’ observations, the unprecedented hit in the valuation is due to relentless spending in the AI.

Some warn that overspending in the name of the AI boom would cause the bursting of bubbles, leading to corrections of markets.

The tech company is expected to report its quarterly results on November, 19.