Finance

Nvidia’s $5 Trillion Dream: How AI Dominance and Trump’s Policies Fuel the Chipmaker’s Ascent

Nvidia neared $5T valuation after strong AI processor bookings and a deal to build supercomputers.

byAndres Castro

October 28, 2025, 5:23 PM

The Nvidia company logo displayed on a mobile device. By gguy / Shutterstock.com

Executive Summary

Nvidia’s market capitalization reached $4.89 trillion, nearing $5 trillion, after its stock surged 50% in 2025 alone.

Nvidia announced $500 billion in AI processor bookings and a deal to build seven supercomputers for the U.S. Department of Energy, including a system with 100,000 Blackwell AI chips to aid the nation’s nuclear arsenal.

CEO Jensen Huang unveiled new products and deals, praised policy by President Donald Trump, and emphasized Nvidia’s central role in the global AI rollout.

The Story So Far

Nvidia’s significant market surge towards a $5 trillion valuation is primarily fueled by its pivotal role in the global artificial intelligence boom, securing substantial bookings for its AI processors and strategic government contracts, including building supercomputers for the U.S. Department of Energy to aid national security and nuclear weapons maintenance. This rapid expansion is set against a backdrop of a U.S.-China trade war and broader government policy, with CEO Jensen Huang having praised policy by President Donald Trump, highlighting the interplay between technological leadership, national interest, and geopolitical dynamics.

Why This Matters

Nvidia’s near-$5 trillion valuation, driven by substantial AI processor bookings and strategic contracts with the U.S. Department of Energy for national security supercomputers, underscores the profound and escalating economic and strategic importance of artificial intelligence. This surge highlights AI’s critical role in both advanced computing and geopolitical power, while CEO Jensen Huang’s praise for President Trump’s policy signals the complex interplay between political decisions and the trajectory of leading AI companies amidst global tech competition.

Who Thinks What?

Nvidia, led by CEO Jensen Huang, views itself as central to the global AI rollout, praising President Donald Trump’s policy and securing significant bookings for AI processors and strategic contracts to build supercomputers.

The U.S. Department of Energy is utilizing Nvidia’s advanced computing capabilities to develop supercomputers, intended to assist the nation in maintaining and advancing its nuclear weapons arsenal.

The market is responding positively to Nvidia’s robust performance and strategic announcements, driving its stock value significantly higher towards a $5 trillion valuation.

Nvidia was on the verge of becoming the first company to reach a $5 trillion valuation on Tuesday, following its announcement of $500 billion in bookings for its artificial intelligence (AI) processors and a deal to build seven new supercomputers for the U.S. Department of Energy. The heavyweight chipmaker’s stock closed almost 5% higher, adding over $230 billion to its market value and bringing its total to $4.89 trillion, after briefly touching $4.94 trillion.

Market Performance and Growth

The company’s robust performance marks a significant milestone, with its stock surging 50% in 2025 alone. Nvidia’s market capitalization had previously surpassed $4 trillion for the first time in July of the same year, underscoring its rapid ascent in the technology sector.

Strategic Announcements and Leadership Remarks

During a keynote address at a developer conference in the U.S. capital on Tuesday, CEO Jensen Huang unveiled new products and deals. In his remarks, Mr. Huang also praised policy by President Donald Trump. Nvidia is positioned at the center of the global AI rollout, navigating a complex landscape that includes a U.S.-China trade war that could shape the future of technology adoption worldwide.

Department of Energy Supercomputers

The supercomputers Nvidia is developing for the U.S. Department of Energy are intended, in part, to assist the nation in maintaining and advancing its nuclear weapons arsenal. The largest of these systems will be constructed in collaboration with Oracle and is designed to incorporate 100,000 of Nvidia’s high-end Blackwell AI chips, highlighting the scale of these advanced computing projects.

Broader Market Context

In related market news, Microsoft, the world’s second most valuable company, saw its stock rise by 2%, pushing its market capitalization to $4.03 trillion. Microsoft and OpenAI also announced a restructuring agreement that allows the ChatGPT maker to transition from its nonprofit origins, potentially paving the way for a public listing.

Key Takeaways

Nvidia’s substantial AI processor bookings and strategic government contracts underscore its dominant position in the burgeoning artificial intelligence market. These developments are propelling the company’s valuation towards an unprecedented $5 trillion, reflecting its critical role in advanced computing and national security initiatives.