Nvidia (NAS100:NVDA) has become the first company to reach a $5 trillion market cap, and the company also released plans for a supercomputer.
NVDA – Daily Chart
The price of NVDA has recovered strongly from the April lows, reaching levels above $200. The big resistance was the previous high around $150. That will remain, but near-term supports line up at the $170-180 levels first if $200 fails to hold.
Chipmaker Nvidia saw its share price power to a new level, with the company becoming the first to breach the $5 trillion market cap. The stock recovered from tariff-based selling into April but has found an upward trajectory on partnerships and an expected trade deal with the U.S. and China. Jensen Huang’s firm also released its new supercomputer, which saw a share of quantum computing stocks hurt on Thursday. The quantum computing sector has delivered strong returns for investors on the back of the AI trend, but Nvidia may have more confidence than some smaller upstarts.
Pharmaceutical firm Eli Lilly and NVIDIA have said they will build the supercomputer to accelerate drug discovery and shorten development cycles. It will be one of the most significant AI partnerships in the pharma industry. The latest deal highlights a further opportunity for partnerships and continued demand for Nvidia chips.
Apple shares recently soared to a $4 trillion market cap, joining Nvidia, before the bar was moved higher again.
Meanwhile, a U.S. Republican lawmaker said that China should not get the Nvidia Blackwell line of chips. The latest remarks highlight that animosity is still brewing between the world’s most important economies.
House Select Committee on China Chairman John Moolenaar had also written in an X post that the country, “cannot sell the latest advanced AI chips to our country’s primary adversary”.
A trade agreement between the countries would be welcomed by the markets, but the underlying hostilities over military technology are likely to remain.
