By Admin 
A small company that once made graphics chips for video games has today become the largest company in the world. This is the story of Nvidia, whose valuation crossed 5 trillion dollars i.e. Rs 453 lakh crore for the first time on 29 October. The amount of 5 trillion dollars will not be known just by listening. Just understand that this amount is more than the economy of the entire country of India. This can feed the entire world, eliminate poverty and provide shelter to crores of people.
So let us understand in ABP Explainer how much is 5 trillion dollars, what can be bought with this much money and how Nvidia became the most expensive company in the world…
Question 1- What is Nvidia company and what does it make?
answer- Nvidia is a technology company, known for the design and manufacturing of graphics processing units (GPU). It was founded in 1993 by Jensen Huang, Curtis Priem and Chris Malachowski. Its headquarters is in Santa Clara, California. Nvidia is already the world’s most valuable semiconductor firm. It has four engineering development centers in India, located in Hyderabad, Pune, Gurugram and Bengaluru.
Nvidia designs and manufactures chips for gaming, cryptocurrency mining and professional applications. Along with this, its chip systems are also used in vehicles, robotics and other equipment. Consider semiconductor as the brain of electronic gadgets. From computers, laptops, cars, washing machines, ATMs, hospital machines to handheld smartphones, all work on semiconductor chips. This chip helps in operating these gadgets like a brain. Every electronic item is incomplete without it. Semiconductor chips are made of silicon and are used to control electricity in circuits.
On October 29, Nvidia’s market cap reached Rs 5.13 trillion for the first time. Nvidia became the first company in the world to cross this figure. After Nvidia, Microsoft and Apple are the most valuable companies in the world. The market cap of Microsoft is 4.03 trillion dollars i.e. 356 lakh crore rupees. Apple is at third place with $4.02 trillion (Rs 355 lakh crore). Google is at fourth place with $3.25 trillion (Rs 287 lakh crore) and Amazon is at fifth place with $2.45 trillion (Rs 216 lakh crore).
Question 2- What are the reasons for Nvidia becoming a 5 trillion dollar company?
answer- Nvidia became a 5 trillion dollar company due to 7 big reasons…
- Growth in AI: Nvidia’s H100 and Blackwell chips are the fastest and necessary for AI tools like ChatGPT, every big company is using these chips.
- Share rise: The company’s shares have increased 12 times since 2022. In just 3 months the value of the company increased from Rs 4 trillion to Rs 5 trillion.
- Large Orders: CEO Jensen Huang announced $500 billion AI chip order. There is also a plan to build 7 supercomputers for America.
- Trust in company: Investors feel that the cost of AI will continue to increase in the coming years, hence they are continuously investing money in Nvidia.
- No competition in the world: There are competitors like AMD, Intel, but till now no company has been able to make chips as fast and reliable as Nvidia.
- Benefit in US-China tension: America has banned selling high-end chips to China. With this, Nvidia became the favorite company of the US government.
- Smart Leadership of CEO: Jensen Huang turned the company towards AI at the right time. He is now the hero of Silicon Valley and investors have faith in him.
Question 3- What does this 5 trillion dollars mean?
answer- If we understand in simple words, the market value of Nvidia is 5 trillion dollars, that is, if someone buys all the shares today, it will cost this much. Nvidia shares have increased 12 times since the launch of ChatGPT in November 2022. On October 29, Nvidia shares traded at $210 i.e. Rs 18,534 with a rise of 4.5%.
Nvidia is worth more than the cryptocurrency market ($4.9 trillion) and half of Europe’s stock index. According to the International Monetary Fund (IMF), Nvidia’s value is about Rs 90 lakh crore more than India’s GDP of $ 4.13 trillion (Rs 364 lakh crore). Nvidia also left behind Japan ($4.1 trillion) and UK ($3.7 trillion).
Question 4- How big is the amount of 5 trillion dollars that Nvidia is talking about everywhere?
answer- In fact, this amount becomes so huge that it is beyond imagination. But let’s understand from everyday example…
- 350 AIIMS will be built: On September 15, 2024, the Union Cabinet approved Rs 1,264 crore for Darbhanga AIIMS in Bihar. That means the cost of building an AIIMS hospital is more than Rs 1200 crore. This includes 750 beds, 100 MBBS seats and 60 nursing seats. If we calculate accordingly, around 350 AIIMS can be built for 5 trillion dollars. This means that there will be super specialty hospitals in every corner of India, where lakhs of people will be able to get free treatment.
- 700-800 IIM institutes will be built: The cost of setting up an IIM institute in 2025 is Rs 500-600 crore (estimated from the cost of the entire building campus of IIM Calcutta at Rs 500 crore and fee structure). That means 700-800 IIM institutes can be built with 5 trillion dollars.
- 220 Rafale will be available: The price of one Rafale jet in 2025 is around Rs 2,307 crore. On April 28, 26 Rafale M were ordered from India-France deal worth Rs 63 thousand crore. According to this, 220 Rafales can be purchased with 5 trillion dollars, which will make the Indian Air Force a super power.
- 2 thousand years funding to ISRO: The annual budget of Indian Space Research Organization (ISRO) is Rs 20 thousand crores. This means that 5 trillion dollars will provide funding for 2 thousand years. This means missions like Chandrayaan will continue for centuries.
Question 5- Can the entire world be fed with 5 trillion dollars?
answer- According to UN World Population Prospects, the world population is 8.1 billion. According to the report of the World Bank’s Food Prices for Nutrition Data Hub, the cost of food for one month per person is $ 3.66 i.e. Rs 4,433. Now if we calculate it with 5 trillion then the whole world can eat food till its stomach for about 12.3 months.
Question 6- What wonders can this money do in eradicating poverty around the world?
answer- According to the June 2025 report of the World Bank, 808 million (80.8 crore) people will be in extreme poverty in 2025. 9.9% of the global population lives on less than $3 per day (Rs 266). According to the World Bank’s Deep Research Program, the annual cost of eradicating poverty per person is $ 100 (Rs 8,867). This means that with 5 trillion dollars, everyone’s poverty will end in about 62 years.