Shares of the California-based giant rose 3.6% on the pre-market. CEO Jensen Huang announced a $500 billion order for AI chips on Tuesday and said he would build seven supercomputers for the US government. These developments have further solidified Nvidia’s leadership in the global AI race.
Global Impact
US President Donald Trump is expected to bring up Nvidia’s Blackwell chip during his meeting with Chinese leader Xi Jinping. This also highlights the company’s geopolitical importance.
Nvidia had surpassed the $4 trillion mark just three months ago. The company has now transformed from a former graphics processor manufacturer into the backbone of the global AI infrastructure.
Competition and Risks
Nvidia’s shares have increased in value 12 times since the launch of OpenAI’s ChatGPT.
However, some analysts warn that this rise may indicate overvaluation.CEO Huang’s fortune has exceeded $177 billion, making him the eighth richest person in the world.
Strategic Position
The advanced chip export restrictions of the US have made Nvidia a central player in Washington’s technology strategy toward China. Huang said, “Policies that strengthen America have increased investment, but completely excluding China could deprive the U.S. of half of the global AI developers.”
Although competitors AMD and new startups are trying to challenge it, Nvidia maintains its undisputed leadership in high-end AI chips.
