Topline
Nvidia’s value reached the $5.5 trillion mark for the first time Wednesday, again breaking the record for the highest ever market capitalization in the history of publicly traded companies, as its stock rallied following news that centibillionaire CEO Jensen Huang is joining President Donald Trump’s trip to China.
Huang’s net worth jumped $5 billion on Wednesday.
Photo by PATRICK T. FALLON/AFP via Getty Images
Key Facts
Nvidia’s market cap reached just over $5.5 trillion as shares surged 3% as of early afternoon.
The rise in shares was accompanied by news that Huang was traveling with Trump to China, where the president will meet with Chinese President Xi Jinping, following earlier reports that said he was not invited.
Nvidia’s rise in shares further cemented its role as the most valuable company in the world, placing itself well above its closest competitors in Google ($4.7 trillion) and Apple ($4.3 trillion).
Nvidia shares are up nearly 20% in the last month and have reached the $220 mark, a far cry from March 30, when the stock reached its lowest point of the year at $165.17 per share.
Forbes Valuation
Huang’s estimated net worth jumped $5.4 billion on Wednesday, reaching $196.1 billion. The benchmark makes him the seventh-most wealthy person in the world. Meta chief Mark Zuckerberg ($209 billion) and Oracle co-founder Larry Ellison ($236 billion) are directly ahead of him in the rankings.
Tangent
The S&P 500 also reached a record high mark Wednesday, rising over half a percent to as high as 7,450.
Big Number
74%. That is how much Nvidia’s stock has risen year-over-year.
Key Background
Nvidia will report first quarter earnings for fiscal year 2027 next week, as the company expects $78 billion in revenue. The AI darling recorded $68 billion in sales in its fourth quarter, a 73% year-over-year increase largely driven by surging data center revenue ($62.3 billion) that accounted for over 91% of Nvidia’s sales. The company has entered several new partnerships this year, including one with Meta that allows the social media company to use Nvidia’s AI chips and hardware. Meta announced earlier this year it plans to spend between $125 billion to $145 billion on AI, with the Nvidia partnership likely worth tens of billions of dollars, Creative Strategies chip analyst Ben Bajarin told CNBC.
Further Reading
Nvidia Earnings Top Expectations On Record Data Center Revenue (Forbes)