Nvidia’s surge to $5.05 trillion has been fueled not just by AI demand, but by a powerful endorsement from President Donald Trump. Trump, who owns up to $1.3 million in Nvidia stock, has repeatedly praised the company and CEO Jensen Huang, calling him an “incredible guy.”
This political backing adds significant momentum to the stock. Trump is also dangling a major carrot for investors: a potential deal to sell less-powerful chips to China. He has stated he will speak with President Xi Jinping on the matter.
This news comes as Nvidia’s valuation became the first in history to cross $5 trillion, adding $1 trillion in just three months. The company’s AI chips are in high demand, with a $500 billion order book.
The company is also striking major deals, including a $100 billion partnership with OpenAI, a robotaxi deal with Uber, and a $1 billion 6G investment in Nokia.
While the President’s endorsement is fueling the rally, top economists are wary. The Bank of England and the IMF have warned of a dangerous AI bubble. They are concerned that the market is ignoring the high failure rate of corporate AI projects and the “circular” nature of industry investments.
