Nvidia Becomes World's Most Valuable Company at $5 Trillion

Nvidia Inc. has become the most valuable company globally, with a valuation exceeding $5 trillion. The company serves as the primary infrastructure provider for cloud computing platforms and AI labs, with revenue forecasts predicting growth of 91% this year and 66% next year. For fiscal 2028, earnings per share are projected to reach $15.68.

Despite this scale, the company has faced a volatile valuation period. Stock multiples fell from over 25 times forward earnings in May to less than 17 times recently, half the multiple seen in 2025. Analysts attribute this discount to rising component costs, which may push gross margins below 72%, and increased competition from major customers like Meta Platforms and Alphabet Inc. as they develop internal AI chips.

Chief Executive Officer Jensen Huang has contested these market assessments, arguing the company is undervalued. To maintain its lead, Nvidia is launching a new GPU architecture to counter custom AI chips with a universal design. The company expects global data center capital expenditures to reach between $3 trillion and $4 trillion by 2030, positioning itself for continued expansion through 2028.