Nvidia (NVDA-US) shares surged nearly 5% on Tuesday (28th), closing at $201.03 and giving the AI chipmaker a market capitalization of $4.89 trillion. At one point intraday, the stock jumped more than 6%, briefly pushing its valuation close to the $5 trillion mark. The rally added more than $230 billion in market value in a single session, fueled by a wave of new deals and CEO Jensen Huang’s keynote at the GTC developer conference in Washington, D.C.
$500 Billion in Orders and DOE Supercomputers
The biggest headline: Nvidia announced it had secured $500 billion in orders and will build seven new supercomputers for the U.S. Department of Energy. The news reinforced Nvidia’s dominance in high-performance computing and its role as the go-to supplier for AI infrastructure.
Pharma, Quantum, and Nokia
Huang also revealed a partnership with Eli Lilly, aimed at creating the most powerful pharmaceutical supercomputer to accelerate drug discovery.
In a nod to the future of hybrid computing, he introduced NVQLink, a new interconnect system designed to link quantum processors with AI supercomputers. Huang called it the "Rosetta Stone" bridging classical and quantum computing.
On the corporate investment front, Nvidia announced a $1 billion investment in Nokia, securing a 2.9% stake in the telecom giant to deepen AI collaboration.
Addressing the "AI Bubble"
Huang pushed back against skeptics who argue the AI sector is overheated. He insisted Nvidia’s latest chips are expected to generate $500 billion in revenue over the next five quarters, underscoring the company’s confidence in sustained demand.
Analyst Take
D.A. Davidson analyst Gil Luria said the announcements highlight Nvidia’s ability to expand beyond its traditional hyperscale data center clients like Microsoft, Amazon, Google, and Meta. While still early, projects in pharmaceuticals, government supercomputing, and telecom could open new growth avenues.
Market Context
Nvidia's stock has already surged 50% in 2025, cementing its position as the world’s most valuable semiconductor company. In July, its market cap crossed $4 trillion for the first time, and Tuesday’s rally pushed it within striking distance of $5 trillion.
The Santa Clara-based company continues to ride the AI wave, with its chips powering everything from cloud computing to drug research to quantum experiments. For investors, the GTC announcements reinforced the idea that Nvidia is not just an AI chipmaker—it’s becoming the backbone of the next era of computing.
The Bottom Line
Nvidia’s near-$5 trillion valuation reflects more than just hype. With $500 billion in new orders, government contracts, pharma partnerships, and a bold push into quantum and telecom, the company is broadening its reach well beyond data centers. Whether or not the AI boom cools, Nvidia’s latest moves suggest it intends to stay at the center of the story.