Nvidia's five-trillion leap and the new power calculus

Nvidia's rise to USD 5 trillion signals a global shift where compute power shapes economic strength, geopolitical influence, and the future of national competitiveness.

- BY JAIDEEP GHOSH

Nvidia's surge past the USD 5 trillion valuation mark has become more than a milestone in corporate history.

It is a signal of a deeper global realignment. The company's extraordinary acceleration—from USD 1 trillion in 2023 to USD 5 trillion within two years—reflects how high-performance computing has moved to the centre of economic competitiveness.

Earlier, it took nearly thirty years since inception for the company to cross the trillion-dollar market cap. At the same time, the rapid journey from USD 4 to USD 5 trillion came in only 78 trading sessions.

This unprecedented rise also highlights a new paradigm: compute power has become the primary currency of the digital era. Control over advanced silicon now shapes industrial capability, national strategy, and geopolitical leverage, placing companies like Nvidia at the heart of global influence.

At the same time, the scale and speed of this valuation raise critical questions about the sustainability of the AI boom, the long-term pricing of technological potential, and the strategic implications for emerging digital economies such as India.

Nvidia's move past USD 5 trillion firmly positions it alongside global technology giants, surpassing Apple and Microsoft in valuation. The company now represents nearly 8% of the S&P 500, while the Magnificent Seven—Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla—account for 37% of total index value. The AI fervour has lifted related stocks. Yet Nvidia's valuation exceeds that of AMD, Broadcom, Intel, and TSMC combined.

Such extreme concentration means Nvidia's stock movements can significantly influence global indices.

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