Nvidia Becomes World's First $5 Trillion Company 31
Nvidia became the world's first $5 trillion company on Wednesday after its stock climbed 5% in early Wall Street trading to push its market capitalization to $5.13 trillion. The Silicon Valley chipmaker reached the milestone three months after hitting $4 trillion and three years after it was valued at roughly $400 billion before the debut of ChatGPT.
Nvidia chief executive Jensen Huang said Tuesday that Nvidia had secured half a trillion dollars in orders for its AI chips over the next five quarters. The stock had already gained 5% on Tuesday and added more than $200 billion to its market value. President Donald Trump said Wednesday he planned to discuss Nvidia's Blackwell chip with China's President Xi Jinping when the two leaders meet later this week. Nvidia's latest generation of graphics processing units is not currently available in China because of US export controls. The company's shares have risen more than 85% in the past six months.
Nvidia chief executive Jensen Huang said Tuesday that Nvidia had secured half a trillion dollars in orders for its AI chips over the next five quarters. The stock had already gained 5% on Tuesday and added more than $200 billion to its market value. President Donald Trump said Wednesday he planned to discuss Nvidia's Blackwell chip with China's President Xi Jinping when the two leaders meet later this week. Nvidia's latest generation of graphics processing units is not currently available in China because of US export controls. The company's shares have risen more than 85% in the past six months.
movie coming soon (Score:3)
"had secured half a trillion dollars in orders for its AI chips " by direct investment in customers. surely that has never been a bad thing...
Insane stock market growth (Score:5, Interesting)
Re:Insane stock market growth (Score:4, Interesting)
There are two types of people in the world (Score:1)
Those that bought NVDA early, and
Those that wish they did.
That is all. Do you want to buy now? It is hard to imagine that the market cap would go to $10T but then again, $5T was pure science fiction not that long ago.
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Agreed. I didn't buy in nearly early enough, but my money is growing so that's all that matters. Even if the stock drops precipitously, I'm up far enough I'll still make out.
The next two years should be interesting to see where things go from here.
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The thing is, its all based on nonsense and hot air. Nvidia doesnt have the sales to justify the price. Eventually the market is going to correct, and on that day the market will shudder as if the very firmament was shuddering beneath the heavens.
The next stock market crash is gonna be a doozy. The smart money is on shorting NVDA and Tesla (Another company whos market cap is abusrd in comparison to actual sales)
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The next bailout is gonna be a doozy.
Fixed that for you
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The cumulative losses since 2010 for those who were trying to make a killing shorting TSLA is estimated at over $65B.
But you wanna give it a try go ahead. I won't stop you.
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They said this when NVIDIA was riding high on the crypto mining boom. But once that dried up, the started selling GPUs to the AI crowd. NVIDIA seems to be very good at jumping on the next big thing early enough to keep the gravy flowing.
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Market cap is one of those things that only matters to Wall Street. You can have a company that is losing money year after year after year, has a "value of assets" that is at $1 Billion, but then has a "market cap" of $1 Trillion. Market cap being number of shares multiplied by stock price makes the market cap about hype.
Enjoy It While It Lasts (Score:4, Insightful)
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the AI bubble popping is going be terrible for a lot of corporations & investors
Why Pop is Slow (Score:5, Interesting)
The AI bubble is probably slower to pop than the dot-com bubble because it's mostly large multi-product companies that are receiving the most investor money, and it's hard for outsiders to tell what's really happening inside. Via bundling, freebies, and multiple accounting shell games these companies can doctor their AI revenue to keep investors duped.
And if they lay off staff due to lower general revenue, they can claim it's just AI replacement. Without embedded insiders familiar with inner workings of a co., it's hard to check.
Whenever somebody looks into details, they rarely see good signs. [axios.com]
With dot-com bubble, most the relevant companies were single product/service startups, so it was easier to see if they can support themselves. They couldn't hide bad products behind good products.
After the AI poppage I suspect there will be big investor/shareholder lawsuits over the hiding.
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Shed no tears for these corps and investors for the lowly taxpayer shall carry them through their dark times.
Re: Enjoy It While It Lasts (Score:2)
Whose taxes were used to buy trillions in public and private assets in 2008 and 2020? When the Fed can raise base money 40% and inflation only barely touched 9%, is printing money a net gain?
Re: Enjoy It While It Lasts (Score:2)
Why wouldn't the Fed step in to buy private equities and save too big to fail companies, as usual?
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i doubt they can afford to this time around. despite the promises of elimination "waste, fraud & abuse" the deficit is as bad as ever and the debt looks to crack $40 Trillion by end of Spring 2026
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The OpenAIs of the world are not training on 5090s.
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Crypto- who knows. I'm not up on whether or not you can still make money with a halo product on crypto, but AI- no. They're not using consumer cards.
Halo products are always overpriced, high margin, and low production. That's literally what they are.
Now, whether DC cards are cutting into consumer manufacturing? Who knows. Probably. But that's different than saying, "I wish they'd make an [crypto|AI] specific card", which they do. Several. Some i
Blood money (Score:5, Insightful)
Profited off the cryptocurrency boom. Energy wasted at the expense of the environment. Garbage "investments". Crazy schemes. Scams and frauds abound.
Profited off the AI boom. Energy wasted at the expense of the environment. Circular garbage investments. Crazy schemes. Scams and frauds abound.
Supercomputing and the masses (Score:3)
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CUDA is Nvidia holding back the community from using APIs that allow to use other hardware. It may or may not be a good API, but it a problem for their competitors.
It's complicated (Score:4, Interesting)
Nvidia is a good company that makes quality products
The current investment frenzy seems irrational
AI shows great promise in helping us solve previously intractable problems in science, engineering, medicine, etc
AI shows great peril in enabling bad people to do bad things
AI slop is getting annoying
The assumption is that we need gigantic data centers to power the next generation of AI
The invention of a far more efficient algorithm may mean that the assumption is false
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Good post.
The assumption is that we need gigantic data centers to power the next generation of AI
The invention of a far more efficient algorithm may mean that the assumption is false
Even in the case of a far more efficient algorithm, the gigantic data centers may likely be a way to create a differentiated version of AI with superior capabilities
The counterpoint would be that we may reach a threshold beyond which 'superior' has less meaning
The bigger the bubble, the more pain when it pops (Score:2)
NVIDIA is such a bubble, while it does have products, AI is a bubble that needs to pop at some point when Wall Street finally figures out that AI in consumer products doesn't have NVIDIA as a significant player. NVIDIA doesn't have a CPU, so desktop and laptop computers may have NVIDIA products in them, but there are very few programs that use AI on the local device. The whole "AI PC" concept is flawed as a result, because we don't have useful programs that use it. Going to the cloud for AI is what mos
lol (Score:2)
>President Donald Trump said Wednesday he planned to discuss Nvidia's Blackwell chip with China's President Xi Jinping when the two leaders meet later this week.
Will he use crayons?
First Bitcoin then AI .. what am I missing (Score:2)
Not normally a conspiracy theorist. First block chain (wont even go into the obscure inventor bit) becomes a thing requiring massive amounts of GPU computing power, to the extent where it was impossible to purchase a GPU to do GPU things. Now AI is a thing, even more so requiring GPUs to do not so much GPU things. Is there a secret world order which needs this massive pattern recognition global infrastructure for some ...... SIGNAL LOST