Nvidia Reclaims $5 Trillion Market Cap on CPU Expansion Hopes

Nvidia has surpassed the $5 trillion market cap, buoyed by expectations for its CPU business expansion. On the 24th local time, Nvidia's stock rose 4.32%, recording a market capitalization of approximately $5.061 trillion at closing. This marks its return to the $5 trillion club, about a year after it first reached it in June last year. The surge is attributed to the growth in the AI semiconductor market and the potential for Nvidia to broaden its business scope beyond Graphics Processing Units (GPUs) by entering the CPU market.

Nvidia CEO Jensen Huang unveiled new CPUs and AI systems at GTC 2026 in March. He projected that the AI chip market opportunity would grow to over $1 trillion by 2027.

Intel raised its second-quarter revenue guidance, citing increased demand for server CPUs for AI data centers, causing its stock to jump 23.6% on the 24th. This contributed to a broader rally across the market, with other semiconductor companies like AMD and Arm Holdings also seeing strong gains. Observations that AI infrastructure investment is expanding from GPUs to CPUs and memory have further amplified the potential for Nvidia's CPU ventures.