Nvidia Tops $5 Trillion, Dominates AI GPU Market

Nvidia became the first company to reach a $5 trillion market valuation on Oct. 29, 2025, at times accounting for roughly 8% of the S&P 500. The surge is driven by record demand for its AI processors — the company controls roughly 90% of the GPU market for large-scale AI workloads thanks to early investment in AI‑tailored chips and the sticky CUDA ecosystem. Wall Street is broadly bullish, with analysts raising price targets and forecasting large shipment ramps, and notable investors such as Masayoshi Son say Nvidia remains undervalued given potential trillions in AI-related capex. Nvidia is actively shaping AI infrastructure through deals with cloud providers, investments in partners and startups (including Spectro Cloud) aimed at boosting GPU utilization and reducing wasted compute. CEO Jensen Huang completed a pre-planned stock sale of more than $1 billion as gains created new billionaire executives, prompting scrutiny of concentration risk — one analysis placed its value at about 16% of U.S. GDP. Still, cautions remain: some experts warn much of the “easy money” may be gone and investors should consider smaller AI infrastructure names, and U.S.–China export frictions add uncertainty about Nvidia’s access to the Chinese market.