By Noël Randewich
(Reuters) -Nvidia came close to becoming the first company worth $5 trillion on Tuesday after the major chipmaker said it had $500 billion in reserves for its artificial intelligence processors and will build seven new supercomputers for the U.S. Department of Energy.
Nvidia shares closed nearly 5% higher, adding more than $230 billion in market value, bringing its total value to $4.89 trillion after briefly touching $4.94 trillion.
CEO Jensen Huang began a keynote speech at a developer conference in the US capital on Tuesday by praising US President Donald Trump’s policies while announcing new products and offerings.
Nvidia is at the center of the global AI rollout and is striking deals as it navigates a trade war between the United States and China that could determine which technology from the two countries is most used around the world.
Shares of the Santa Clara, California company are up 50% in 2025. Its market capitalization closed above $4 trillion for the first time in July.
Microsoft, the world’s second most valuable company, rose 2%, raising its market capitalization to $4.03 trillion. OpenAI and OpenAI announced a restructuring deal that frees the ChatGPT maker to move away from its nonprofit roots and likely go public.
The supercomputers Nvidia is building for the Department of Energy will in part help the United States maintain and develop its nuclear weapons arsenal. The largest of the supercomputers will be built with Oracle and will contain 100,000 high-end Blackwell AI chips from Nvidia.
(Reporting by Noel Randewich; Editing by Richard Chang)