Nvidia To Report Quarterly Earnings
Nvidia’s Santa Clara headquarters in California, home of the chipmaker driving the AI boom. Justin Sullivan/Getty Images

SYDNEY — Nvidia Corporation has made financial history: the company now stands as the first public company ever to cross a US $5 trillion market-capitalisationmark, a meteoric rise that underscores the central role of artificial intelligence in the global economy.

The milestone was reached following a rally in Nvidia's shares, bolstered by a well-publicised keynote at its annual GTC 2025 conference and comments from Donald Trump praising the company and signalling a shift in export-control policy.

AI demand fuels the surge

Nvidia's climb has been nothing short of dramatic. As demand for high-performance graphics processing units (GPUs) and specialised AI chips skyrockets, Nvidia has found itself at the heart of the generative AI surge.

Just three months ago the company had broken the $4 trillion threshold.

CEO Jensen Huang flagged major deals with the U.S. government, including orders for supercomputers and advanced chip-platforms, and promoted the company's "Made in America" narrative.

Political and trade dynamics at play

The achievement is not just technological — it's geopolitical. The U.S.-China chip export war continues to loom large. Nvidia's ability to sell into China (albeit via restricted versions of its products) remains a key wildcard.

Mr Trump's public comments have helped position Nvidia as a poster-child of U.S. tech-strength and global AI leadership. While the former president owns shares in the company, his endorsement also signals possible policy shifts in export controls.

Risk of a bubble — and what to watch

Yet the jubilation comes with caution. Financial authorities such as the International Monetary Fund (IMF) and the Bank of England have warned that the rapid rise in AI-driven equities may be unsustainably fast.

Nvidia itself signposted a slight slowdown in chip-sales growth in its latest quarter — even as revenue rose strongly — raising questions about how long the boom can last.

Key risk-factors include:

  • Export-control dynamics, especially China access
  • The ability of AI customers to convert large infrastructure spending into profits
  • Broad market valuations already stretched in tech

Looking ahead: what this means for Australia

For Australian investors and technology watchers the milestone is a signal. Nvidia's dominance suggests that the next wave of global tech spending will flow into AI infrastructure, data-centres, and chip ecosystems.

Australian firms tied to AI hardware or software may benefit from this global momentum — yet they must also brace for a corrective cycle if valuations roll back.

In short: Nvidia's historic mark is both a cause for celebration — and a reminder. The AI era is here, but it may also be entering its most delicate phase.