Nvidia Is Now the Market's First $5 Trillion Stock. Here's Why You Should Still Buy It.
News Summary
After worrying investors earlier this year, Nvidia has become the market's first $5 trillion company, with its stock up 55% year-to-date. The article argues that despite its high valuation, Nvidia's growth potential remains vast, making it a compelling buy for investors. The company is actively rolling out new products and forging deals with partners. For instance, Nvidia announced a partnership with Uber to power its autonomous vehicle fleet with DRIVE AV Platform and DRIVE AGX Hyperion 10 Architecture, with plans to scale to 100,000 cars by 2027. Additionally, Nvidia struck a deal with Palantir Technologies to build an integrated AI solution aimed at streamlining Palantir's data analysis platform. Nvidia also debuted Omniverse DSX, an
Background
Nvidia continued its strong performance in artificial intelligence in 2025, reaching a $5 trillion market capitalization this week, after first surpassing $4 trillion in July, solidifying its position as the world's most valuable company. This growth is primarily driven by massive demand for AI processing power and its innovations in data centers, autonomous driving, and generative AI technologies. Concurrently, the Trump administration's earlier 2025 export restrictions on Nvidia's H20 chips to China were eased in subsequent months. While the full financial impact of this policy adjustment has yet to be realized, it opens up possibilities for the company to resume growth in the crucial Chinese market and reflects the complex dynamics in high-tech between the US and China.
In-Depth AI Insights
What are the underlying strategic motives behind Nvidia's aggressive partnership and product rollout strategy, beyond immediate revenue? Nvidia's strategy extends beyond mere revenue growth, aiming to build an insurmountable AI ecosystem moat to ensure long-term dominance: - Ecosystem Lock-in: By partnering with industry leaders like Uber and Palantir, Nvidia not only sells chips but deeply integrates its technology into clients' core operations, creating high stickiness that makes it difficult for customers to switch to competitors. - Standard Setter: The introduction of integrated solutions like Omniverse DSX aims to define the standards for building and operating