In a landmark achievement for global markets, Nvidia Corporation has become the first company in history to reach a staggering $5 trillion market capitalization. This milestone, realized on October 29, 2025, marks the culmination of a remarkable ascent that seemed like a distant prospect just months earlier. The driving forces behind this unprecedented surge and its sustainability are now central questions for investors.
Manufacturing Momentum and Record Financials
The company’s recent operational and financial performance provides substantial foundation for its valuation. CEO Jensen Huang confirmed that the advanced Blackwell graphics processing units are now in full-scale production at facilities in Arizona. This domestic manufacturing capacity not only addresses national security considerations but also positions Nvidia to meet the seemingly insatiable global demand for artificial intelligence computing power.
The scale of production is extraordinary: over the previous four quarters, Nvidia has successfully shipped 6 million Blackwell GPUs, with market demand continuing to significantly outpace available supply.
Financial results for the second quarter of fiscal year 2026 underscore this operational success. The company reported record revenue of $46.7 billion, representing a 56 percent year-over-year increase. Its data center segment alone generated $41.1 billion in revenue. Perhaps most impressively, Nvidia maintained a gross margin of approximately 75 percent, demonstrating its persistent pricing power despite increasing competitive pressures.
CEO Reveals Staggering Order Pipeline
At the recent GTC conference in Washington D.C., CEO Jensen Huang delivered a stunning announcement: Nvidia has secured approximately $500 billion in chip orders currently on its books. This colossal figure highlights the technology sector’s intense demand for Nvidia’s latest Blackwell architecture and its forthcoming Rubin chips.
Should investors sell immediately? Or is it worth buying Nvidia?
Key strategic developments underpinning this order book include:
• A partnership with the U.S. Department of Energy to develop seven new supercomputers
• Full production of Blackwell GPUs already underway at Arizona facilities
• An allocation of 100,000 Blackwell GPUs dedicated solely to the Department of Energy’s flagship AI supercomputing project
• A strategic collaboration with Oracle focused on research applications
Analyst Confidence Ahead of Earnings
With highly anticipated quarterly results scheduled for November 19, Goldman Sachs has amplified market optimism by raising its price target for Nvidia shares while reaffirming its buy recommendation.
The investment bank’s analysts substantiated their position by noting Nvidia’s continued disproportionate benefit from the expanding artificial intelligence market. Their assessment reflects growing confidence that the chip manufacturer can further extend its dominance within the AI sector, potentially exceeding upcoming financial projections.
The convergence of massive pre-orders, robust manufacturing output, and strong analyst support creates a powerful narrative around Nvidia’s current market position. As the company approaches its next earnings announcement, the financial world watches to see whether this historic valuation can be sustained and what new milestones might lie ahead for the semiconductor giant.
Ad
Nvidia Stock: Buy or Sell?! New Nvidia Analysis from February 7 delivers the answer:
The latest Nvidia figures speak for themselves: Urgent action needed for Nvidia investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
Nvidia: Buy or sell? Read more here...
