Nvidia, a leading manufacturer of artificial intelligence (AI) chips, has reached a market capitalization of $5 trillion, a milestone never before achieved by any company. The California-based tech giant’s share price increased by 4.91 percent to $210.90 at the opening of trading on Wall Street, driven by investor confidence in the potential of AI to drive innovation and growth.

The company’s strong sales and recent partnerships, including a deal with Nokia announced on Tuesday, have contributed to the surge in its share price. Additionally, expectations that Nvidia may soon regain access to the Chinese market have also boosted investor confidence. Nvidia’s chips are currently not sold in China due to government bans, national security concerns, and trade tensions between the US and China.

Nvidia CEO Jensen Huang is scheduled to attend the APEC summit in South Korea, where US President Donald Trump and Chinese President Xi Jinping are expected to discuss issues related to AI development. The Trump administration is considering a more nuanced approach to selling AI chips to China, but faces opposition from China hawks who favor tougher bans on AI technology.

In recent weeks, Nvidia has announced several partnerships, including a planned investment of up to $100 billion in OpenAI, the maker of ChatGPT, and a $5 billion investment in Intel, a struggling chip rival. Nvidia’s advanced graphics processing units (GPUs) power most generative AI systems, including those behind ChatGPT and other large language models.

The company’s achievement highlights the growing importance of AI in driving technological innovation and economic growth. As the demand for AI-powered solutions continues to rise, companies like Nvidia are well-positioned to benefit from this trend. With its market capitalization now exceeding $5 trillion, Nvidia’s influence in the tech industry is likely to continue to grow, with potential implications for the global economy and the development of AI technology.