Nvidia close to reaching historic $5 trillion valuation

Nvidia is positioned to become the first company to reach a $5 trillion market valuation following a recent significant premarket stock increase. 

According to a recent report by Reuters, the chipmaker's shares rose 2.8% after CEO Jensen Huang announced $500 billion in AI chip orders and plans to construct seven supercomputers for the US government.

The milestone comes just months after Nvidia reached a $4 trillion valuation in July, reflecting rapid growth driven by demand for artificial intelligence technology. One of the planned supercomputers, developed in partnership with Oracle, will incorporate 100,000 of Nvidia's Blackwell chips, adds the Reuters report.

Nvidia's expanding influence has made it subject to international trade regulations, including US export restrictions on advanced chips to China. As per the report, the company's market weight means stock fluctuations can significantly impact global indices and investment portfolios containing S&P 500 and Nasdaq 100 funds.

At the time of writing, Nvidia's market capitalisation stands at the highest in the list, at $4.894 trillion, placing it right above Microsoft's $4.029 trillion valuation.