Nvidia Becomes First Company to Reach $5 Trillion Valuation

Nvidia Inc. has reclaimed its position as the world's largest company by market capitalization, marking the first time any company has reached a valuation exceeding $5 trillion. The chipmaker now leads its primary competitor, Apple Inc., which holds a valuation of $4.9 trillion.

Despite a recent year of growth that closely aligned with the S&P 500's 17.6% increase, the company's long-term fundamentals show significant expansion. Over the last five years, revenue grew by 1,150% and net income increased by 2,250%.

This growth has pushed the company's trailing price-to-earnings ratio to 26.7, a five-year low. This indicates that shares are currently cheaper relative to earnings than they were five years ago. While the valuation remains heavily dependent on continued spending on AI infrastructure, Nvidia currently maintains a lower P/E ratio than Apple.