Nvidia stock surged sharply today, jumping 3% to $206.08, pushing its market valuation beyond $5 trillion for the first time ever. The rally made Nvidia the world’s first company to cross the $5 trillion mark, underscoring its dominance in the global AI chip race. The surge came on heavy trading volume of nearly 190 million shares, signaling strong investor conviction in the company’s long-term AI growth story.
Nvidia’s latest billion-dollar partnerships are reshaping its growth story. The AI chip giant made headlines with a $1 billion investment in Nokia, grabbing a 2.9% stake to jointly develop AI-native telecom networks (AI-RAN). This deal ties Nvidia’s AI computing power with Nokia’s vast telecom reach across 5G and upcoming 6G systems. The collaboration positions Nvidia deep inside the telecom infrastructure market projected to hit $200 billion by 2030, expanding its dominance beyond chips into AI-powered network intelligence.
At the same time, Nvidia teamed up with Oracle and the U.S. Department of Energy to build America’s largest AI supercomputer, packing 100,000 Blackwell GPUs and delivering a massive 2,200 exaflops of performance. A second supercomputer, with 10,000 GPUs, adds more capacity for AI research and scientific breakthroughs. These partnerships firmly establish Nvidia as the backbone of global AI infrastructure—spanning data centers, national labs, and telecom networks.
The main keyword behind this rally: AI infrastructure demand. Nvidia’s powerful GPUs have become the backbone of modern artificial intelligence systems, powering large-language models like ChatGPT, Gemini, and Claude. Its data center revenue continues to rise triple digits year-over-year, driven by soaring demand from tech giants including Microsoft, Amazon, and Meta. The company now controls nearly 80% of the global AI chip market, a lead that has made it indispensable to the world’s fastest-growing technology sector.
Investors were also encouraged by fresh strategic announcements. Nvidia revealed a $1 billion investment in Nokia to co-develop AI-native telecom networks and 6G infrastructure. It also confirmed collaborations with the U.S. Department of Energy to build seven new AI supercomputers, expanding its footprint into national research and defense computing. Meanwhile, Nvidia’s latest developer conference unveiled next-gen chips and software tools that will boost AI training speeds, further strengthening its market position.
Crossing the $5 trillion valuation is more than a symbolic milestone—it’s a reflection of how Nvidia has redefined itself from a gaming chipmaker into the heart of the AI revolution. Analysts say the market sees Nvidia as the “picks and shovels” provider of the AI boom—selling the essential technology every major company needs to build intelligent systems. The technical setup also contributed to the move: Nvidia’s stock broke above key resistance levels with strong momentum, suggesting bullish institutional activity.
Despite the euphoria, experts warn that Nvidia’s valuation leaves little margin for error. The company trades at a forward P/E ratio above 40, making it vulnerable to even slight earnings disappointments. Regulatory tensions also loom large, as the U.S. tightens export controls on advanced chips to China. Any slowdown in AI infrastructure spending or chip supply disruptions could quickly test investor optimism. Still, Wall Street sentiment remains overwhelmingly positive, with over 80% of analysts maintaining a “Buy” rating on NVDA.
As of Wednesday, Nvidia shares have gained nearly 78% year-to-date, outpacing all major U.S. indexes and cementing its role as the biggest winner of the AI boom. The stock’s 52-week range now stands between $96.40 and $212.05, reflecting a year of historic growth. For investors, Nvidia has become the defining stock of the artificial intelligence era—highly valued, high risk, but still the undisputed leader in AI computing power.
The stock recently broke out of a rising wedge pattern on technical charts, signaling strong investor buying interest and potential further upside, with a price target estimated around $220. Key support levels to watch are around $185 and $165. Nvidia's earnings per share stand at 3.68 with a price-to-earnings ratio of about 56.18, reflecting high growth expectations in the market.
Regarding the P/E ratio, today's reported figure is approximately 56.23, compared to 54.63 (estimated) from yesterday based on the prior stock price. This implies the P/E ratio increased by about 1.6 points or roughly 2.9% alongside the stock price movement.
Nvidia’s growth is significantly boosted by a range of strategic partnerships and deals across multiple industries, notably in AI, telecommunications, autonomous vehicles, and government projects.
Key partnerships include:
Key historical insights:
Nvidia’s latest billion-dollar partnerships are reshaping its growth story. The AI chip giant made headlines with a $1 billion investment in Nokia, grabbing a 2.9% stake to jointly develop AI-native telecom networks (AI-RAN). This deal ties Nvidia’s AI computing power with Nokia’s vast telecom reach across 5G and upcoming 6G systems. The collaboration positions Nvidia deep inside the telecom infrastructure market projected to hit $200 billion by 2030, expanding its dominance beyond chips into AI-powered network intelligence.
At the same time, Nvidia teamed up with Oracle and the U.S. Department of Energy to build America’s largest AI supercomputer, packing 100,000 Blackwell GPUs and delivering a massive 2,200 exaflops of performance. A second supercomputer, with 10,000 GPUs, adds more capacity for AI research and scientific breakthroughs. These partnerships firmly establish Nvidia as the backbone of global AI infrastructure—spanning data centers, national labs, and telecom networks.
The main keyword behind this rally: AI infrastructure demand. Nvidia’s powerful GPUs have become the backbone of modern artificial intelligence systems, powering large-language models like ChatGPT, Gemini, and Claude. Its data center revenue continues to rise triple digits year-over-year, driven by soaring demand from tech giants including Microsoft, Amazon, and Meta. The company now controls nearly 80% of the global AI chip market, a lead that has made it indispensable to the world’s fastest-growing technology sector.
Investors were also encouraged by fresh strategic announcements. Nvidia revealed a $1 billion investment in Nokia to co-develop AI-native telecom networks and 6G infrastructure. It also confirmed collaborations with the U.S. Department of Energy to build seven new AI supercomputers, expanding its footprint into national research and defense computing. Meanwhile, Nvidia’s latest developer conference unveiled next-gen chips and software tools that will boost AI training speeds, further strengthening its market position.
Crossing the $5 trillion valuation is more than a symbolic milestone—it’s a reflection of how Nvidia has redefined itself from a gaming chipmaker into the heart of the AI revolution. Analysts say the market sees Nvidia as the “picks and shovels” provider of the AI boom—selling the essential technology every major company needs to build intelligent systems. The technical setup also contributed to the move: Nvidia’s stock broke above key resistance levels with strong momentum, suggesting bullish institutional activity.
Despite the euphoria, experts warn that Nvidia’s valuation leaves little margin for error. The company trades at a forward P/E ratio above 40, making it vulnerable to even slight earnings disappointments. Regulatory tensions also loom large, as the U.S. tightens export controls on advanced chips to China. Any slowdown in AI infrastructure spending or chip supply disruptions could quickly test investor optimism. Still, Wall Street sentiment remains overwhelmingly positive, with over 80% of analysts maintaining a “Buy” rating on NVDA.
As of Wednesday, Nvidia shares have gained nearly 78% year-to-date, outpacing all major U.S. indexes and cementing its role as the biggest winner of the AI boom. The stock’s 52-week range now stands between $96.40 and $212.05, reflecting a year of historic growth. For investors, Nvidia has become the defining stock of the artificial intelligence era—highly valued, high risk, but still the undisputed leader in AI computing power.
Why is Nvidia stock surging to historic highs?
Nvidia (NVDA) stock today is trading at $206.73, up 2.84% or $5.7 from the previous close of $201.03. The stock hit a low of $205.03 and a high of $212.19 during the trading day, with a market capitalization of approximately $5.03 trillion. Nvidia's stock has been performing strongly in 2025, rising over 70% year-to-date, driven by robust demand for its AI chips and positive growth forecasts.The stock recently broke out of a rising wedge pattern on technical charts, signaling strong investor buying interest and potential further upside, with a price target estimated around $220. Key support levels to watch are around $185 and $165. Nvidia's earnings per share stand at 3.68 with a price-to-earnings ratio of about 56.18, reflecting high growth expectations in the market.
Regarding the P/E ratio, today's reported figure is approximately 56.23, compared to 54.63 (estimated) from yesterday based on the prior stock price. This implies the P/E ratio increased by about 1.6 points or roughly 2.9% alongside the stock price movement.
Nvidia’s growth is significantly boosted by a range of strategic partnerships and deals across multiple industries, notably in AI, telecommunications, autonomous vehicles, and government projects.
Key partnerships include:
- A $100 billion investment and strategic collaboration with OpenAI to deploy at least 10 gigawatts of Nvidia systems powering OpenAI’s next-generation AI infrastructure. This alliance ensures Nvidia chips are at the core of scaling cutting-edge AI models and data centers, underpinning future AI breakthroughs.
- Collaboration with telecommunications companies like T-Mobile and Nokia to develop “AI-native” 6G cellular networks using Nvidia’s AI Aerial platform and new products like Nvidia ARC. Nvidia took a $1 billion stake in Nokia to further this initiative, aiming to bring advanced AI connectivity to wireless infrastructure.
- Partnership with Uber to develop 100,000 self-driving robotaxis by 2027 powered by Nvidia’s chips and DriveOS, enabling more accessible autonomous transportation.
- Working with Palantir to integrate Nvidia AI models into business and operational AI applications, such as Lowe’s digital twin supply chain optimization.
- Agreements with the U.S. Department of Energy to build seven new AI supercomputers for government research into energy, national security, and advanced computing, enhancing Nvidia’s leadership in high-performance AI computing.
- Collaborating with Intel to develop custom x86 CPUs for AI infrastructure and personal computing, and others to accelerate AI adoption in quantum computing and robotic manufacturing.
What is driving the massive AI demand for Nvidia chips?
The surge in Nvidia’s stock is directly linked to the skyrocketing demand for AI chips. These chips power everything from advanced AI models to enterprise data centers. Here’s why the demand is so high:- Nvidia’s GPUs are the backbone of most AI systems, including large language models.
- Companies and governments are investing billions into AI infrastructure.
- Global AI adoption is accelerating, creating scarcity for high-end GPUs.
Why is Nvidia working closely with governments and building AI supercomputers?
Nvidia is also expanding into government projects, further solidifying its importance in the AI ecosystem. It is helping build several AI supercomputers that will handle massive data processing tasks. Key points include:- Collaborating with national labs and agencies to create highly advanced AI computing facilities.
- Committing over $100 billion in resources to build specialized AI data centers.
- Creating systems capable of supporting large AI models like ChatGPT with tens of gigawatts of processing power.
What risks do investors need to be aware of?
While Nvidia’s growth is impressive, investors should remain cautious. There are several potential risks:- High valuation: The stock is priced for significant growth, meaning any slowdown could trigger corrections.
- Customer concentration: A few major clients account for a large portion of revenue.
- Geopolitical and supply chain risks: Export controls and global supply constraints could affect production.
How does Nvidia compare historically and why does it matter?
Nvidia’s rapid rise is unprecedented. The company reached a $4 trillion market cap only three months ago. The quick climb to $5 trillion shows strong investor confidence in AI as a long-term growth driver.Key historical insights:
- Nvidia is now the first company to cross the $5 trillion milestone.
- Its GPUs are considered essential for almost all major AI projects globally.
- Analysts compare its AI-driven growth to past technology booms like the iPhone era.
What can investors expect from Nvidia in the future?
Looking forward, Nvidia’s role in AI technology and infrastructure suggests sustained growth. Key trends and expectations include:- Continued partnerships with enterprise clients and governments.
- Expansion of AI supercomputers and data centers worldwide.
- Increasing demand for AI chips as more industries adopt advanced technologies.
- Strong financial performance, including revenue growth in AI-focused segments.
