(MENAFN) US tech giant Nvidia has reached a historic milestone, surpassing a $5 trillion market capitalization — a first for a semiconductor company — as investor enthusiasm for artificial intelligence continues to drive record gains.

The surge came after US President Donald Trump said he plans to discuss Nvidia’s Blackwell AI chips with Chinese President Xi Jinping during their upcoming meeting in South Korea on Thursday.

“I expect to be lowering that because I believe they’re going to help us with the fentanyl situation,” Trump told reporters Wednesday before departing for the summit.

Nvidia’s shares jumped 5.2% to close at $211.47, pushing the company past the $5 trillion threshold — just four months after it hit $4 trillion. The milestone underscores Nvidia’s dominance in the global AI chip market, which has fueled a tech stock rally throughout 2025.

CEO Jensen Huang recently announced a series of new partnerships as global demand for AI hardware and software continues to surge. Nvidia currently commands over 90% of the market for advanced AI chips used in data centers and machine learning applications.

“Investors have been taught to look past AI valuations, and if what everyone is betting on with AI comes to fruition, then those valuations are probably justified – though some of it may be hard to live up to,” said Dan Eye, chief investment officer at Fort Pitt Capital Group, in an interview with Bloomberg. He also cautioned that Nvidia faces rising competition from AMD, Broadcom, and China’s growing domestic chipmakers.

Meanwhile, Apple briefly topped $4 trillion in market value earlier this week, joining Nvidia and Microsoft in the elite club of trillion-dollar tech giants. Apple’s rebound — fueled by strong iPhone sales — highlights how AI optimism and hardware innovation are reshaping global markets.

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