Nvidia Approaches $5 Trillion Market Cap in Pre-Market Trading

$500 billion AI chip deal and hopes for a China market recovery

Nvidia is on the verge of surpassing a market capitalization of $5 trillion (7,132 trillion won) for the first time in history.

On the 28th, U.S. local time, Nvidia unveiled a $500 billion (710 trillion won) AI chip deal and a plan to build seven supercomputers for the U.S. government, sending its shares up 4.98% and pushing its market capitalization to $4.885 trillion.

In pre-market trading before the U.S. market opened on the 29th (local time), around 7 a.m. Eastern Standard Time, Nvidia shares were trading up 3.7% at $208. In the pre-market, it exceeded $5 trillion. Expectations that a breakthrough for sales of the Blackwell chip to China could be reached at the summit between U.S. President Trump and Chinese President Xi Jinping, scheduled for the 30th in South Korea, also added to optimism.

For Nvidia's market capitalization to officially exceed $5 trillion, the stock must close at $205.76 per share in today's U.S. session. Nvidia's share price has risen 11.51% over the past 4 trading days, marking its best 4-day gain since May 15.

The $5 trillion figure would, as of the end of 2024, rank third by country GDP after the U.S. ($29 trillion) and China ($18 trillion), surpassing Germany ($4.7 trillion) and Japan ($4 trillion).

Nvidia first surpassed a market capitalization of $4 trillion last July and added another $1 trillion in value within 3 months.

Analysts said that while some warn of inflated valuations for AI, expectations that AI spending will surge across industries have been reflected in Nvidia's rise.

On the 29th (local time), Reuters reported that investors said Nvidia's stock movements could ripple through pensions, funds, ETFs and portfolios worldwide.

Nvidia's market dominance in AI has emerged as a geopolitical key factor. The U.S. has imposed export controls on Nvidia's cutting-edge chips to limit the development of China's AI capabilities.

Nvidia's latest platform chip, the Blackwell chip, is also a point of contention in U.S.-China talks. On the 29th, President Trump said he might raise the Blackwell chip issue when he meets Chinese President Xi Jinping on the 30th.

Meanwhile, Jensen Huang will visit South Korea starting on the 30th. During the visit, Nvidia plans to discuss various cooperation measures with Samsung, Hyundai Motor, SK Group and others, including supplying AI chips for data centers.

According to CNBC, Nvidia may also announce plans with Korean companies in autonomous driving and robotics sectors.

Kim Jeong-ah, contributing reporter kja@hankyung.com