Nvidia Makes History as First Company to Reach $5 Trillion Valuation, Surpassing India and Japan's GDPs

Nvidia has achieved a historic milestone by becoming the first company ever to reach a $5 trillion market valuation, exceeding the GDP of most nations worldwide.

Originally recognized primarily for gaming graphics processors, Nvidia has evolved into a leading provider of artificial-intelligence infrastructure. The company recently secured bookings of approximately $500 billion for its next-generation AI chips and announced plans to construct seven supercomputers for the US Department of Energy, according to Reuters.

This extraordinary growth has driven the company's stock value up approximately 50 percent in 2025.

With its $5 trillion market capitalization, Nvidia now surpasses the GDPs of nearly all countries except the United States, China, and Germany. For context, Japan's GDP stands at roughly $4.28 trillion, while India's is $4.13 trillion, as Forbes reports, meaning Nvidia's market value alone exceeds these significant economies.

Other technology giants are also reaching remarkable valuations. Apple Inc. recently surpassed the $4 trillion market value threshold, joining Nvidia and Microsoft Corporation in the exclusive "multi-trillion dollar" club.

The market capitalizations of these technology companies now exceed the GDPs of developed economies including the United Kingdom, France, Italy, and Canada.

Even Tesla, valued at approximately $1.45 trillion, now ranks above several major national economies, including Indonesia ($1.44 trillion), the Netherlands ($1.32 trillion), Saudi Arabia ($1.27 trillion), and Poland ($1.04 trillion).

It's important to note that a company's market valuation does not represent its actual annual revenue or cash flow; rather, it reflects investor confidence and future growth expectations, which can fluctuate rapidly. Nvidia, for instance, continues to navigate US-China export restrictions that could affect its sales, Reuters noted.

The company's market capitalization also exceeds the combined value of Saudi Aramco, Berkshire Hathaway, and Tesla, and even surpasses the entire UK stock market, estimated at $4.2 trillion.

The remarkable surge was fueled by several significant developments. Nvidia's shares increased 5.6 percent to over $212 following news of robust sales in China and a potential policy shift regarding chip exports. The company also announced a $1 billion investment in Nokia alongside a partnership to develop "AI-native" 5G and 6G networks.