Nvidia Reaches $5 Trillion Market Value, Leading AI Revolution

Nvidia Corporation has achieved a historic milestone, becoming the first company to surpass a $5 trillion market valuation. This landmark underscores Nvidia's pivotal role in the artificial intelligence (AI) revolution and its transformation from a graphics chip manufacturer to a central figure in the AI industry.

The company's ascent to this valuation is largely attributed to the surging demand for its graphics processing units (GPUs), which are integral to AI systems. Nvidia's GPUs are widely used in training and deploying AI models, and as of 2025, the company controlled more than 80% of the market for GPUs used in these applications. Additionally, Nvidia's chips are utilized in over 75% of the world's TOP500 supercomputers, highlighting their critical role in high-performance computing.

Concurrently, Nvidia announced a strategic partnership with the South Korean government and major corporations, including Samsung Electronics, SK Group, Hyundai Motor Group, and Naver. Under this agreement, Nvidia will supply over 260,000 of its advanced Blackwell AI chips to support various applications such as smart factories, semiconductor and vehicle manufacturing, and AI computing centers. This collaboration aligns with South Korea's ambition to become a regional AI hub and signifies Nvidia's strategic expansion into markets less affected by U.S.-China trade tensions.

The distribution of the Blackwell AI chips is as follows:

• Approximately 50,000 chips will support government AI infrastructure.
• Each of the three conglomerates—Samsung Electronics, SK Group, and Hyundai Motor Group—will deploy up to 50,000 chips.
• Naver will purchase 60,000 chips.

These chips will power applications such as smart factories, semiconductor and vehicle manufacturing, and AI computing centers.

Nvidia CEO Jensen Huang emphasized the significance of this partnership, stating, "Just as Korea's physical factories have inspired the world with sophisticated ships, cars, chips, and electronics, the nation can now produce intelligence as a new export that will drive global transformation."

This partnership not only strengthens Nvidia's presence in the Asian market but also aligns with South Korean President Lee Jae Myung's initiative to position the country as a regional AI hub. President Lee, who took office on June 4, 2025, has prioritized AI investment to spur economic growth amid global trade uncertainties.

Nvidia's strategic moves and technological advancements have solidified its position as a leader in the AI sector. The company's GPUs are essential for AI development, and its partnerships with global tech giants further enhance its influence in the industry. As of 2025, Nvidia's market capitalization surpasses that of many other tech companies, reflecting investor confidence in its growth trajectory.

These developments underscore Nvidia's dominant position in the AI sector and its influence on global technology and financial markets.