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.

India services PMI: India’s service sector has demonstrated a record -breaking demonstration in August and its speed has reached a 15 -year highest level. This bounce was mainly possible due to a rapid increase in new orders and production. The HSBC India Services Purchasing Manager Index (PMI) data released in a private survey conducted by S&P Global.

According to the report, seasonally adjusted HSBC India Seva PMI rose from 60.5 in July to 62.9 in August. This is the fastest speed of expansion since June 2010. The survey states that significant improvement in demand and strengthening of new orders brought out the activities of services to a high level of 15 years.

Strength in demand and order

More than 50 points on the scale of PMI means that business activities are expanding, while less than 50 points indicate contractions. Reaching PMI 62.9 in August shows that the service sector is expanding very fast.

According to HSBC India Chief Economist Pranjul Bhandari, “The growth rate of services is at a 15 -year high and the increase in the new order has strengthened it.” However, he also added that the inflation rate on the price front has reached a 9 -month high, due to which inflation also remains pressure.

Composite PMI jump

Meanwhile, the joint index of both services and manufacturing composite PMI also increased from 61.1 in July to 63.2 in August. This is the fastest growth of 17 years. This means that not only services but also the manufacturing sector in India is performing strong and the two together are taking overall economic activities to a new height.

The index has been prepared by S&P Global on the basis of survey of about 400 service sector companies and is given weightage in the ratio of India’s GDP (GDP).

Also read: GST’s new slab: what will be cheap and who will become expensive, where will you get relief, where can there be trouble

India’s Index of Industrial Production: This news is going to give relief for the Indian economy facing the American tariff. In July, there has been a 3.5 percent increase in industrial production of the country. This is the highest increase in the last four months. The main reason for this surge was the better performance of the manufacturing sector.

On Thursday, the official data released by the National Statistics Office (NSO) stated that the Industrial Production Index (IIP) increased by 3.5 percent in July. This is the highest level after the 3.9 percent increase recorded in March this year. However, in July 2024, industrial production had increased at the rate of 5 percent, that is, this time the growth on an annual basis has been slightly slow.

Meanwhile, NSO has kept the growth rate of industrial production for June 2025 stable at 1.5 percent. This figure is the same as the temporary estimate released last month.

Why increased speed?

In July 2025, the growth rate of manufacturing sector was 5.4 percent, compared to 4.7 percent in the same month last year. However, the mining sector recorded a huge decline of 7.2 percent. A year ago, it increased by 3.8 percent in the same period. There was also a big decline in power generation. While power generation increased by 7.9 percent in July 2024, it was only 0.6 percent in July 2025.

FY

The country’s total industrial production increased by only 2.3 percent in the first four months (April-July) of FY 2025-26. Whereas in the same period last year, it was 5.4 percent. It is clear that at the beginning of the current financial year, the pace of industrial activities has been relatively slow.

Significantly, this increased news has come at a time when 50 percent US tariffs have been effective on India since August 27, one day ago. However, many efforts are being made by the government to deal with it. But, it is being said that due to this high tariff, business related to labor -oriented employment such as clothes, leather, footwear, gems and jewelery can be affected.

Also read: What is the government’s plan to deal with Trump Tariff, Finance Minister Nirmala Sitharaman told

Indian economy: The economy of India remains strong with the help of strong domestic demand, good monsoon and fiscal rationality (to be managed by the government carefully and with responsibility) despite all the global challenges. This has been revealed in a new report of the Finance Ministry.

The economy of the country is moving forward with the help of them

The Finance Ministry said in its ‘Monthly Economic Review June 2025’ released on Monday, July 28, the Indian economy presents a picture of cautious optimism in mid -2025. Despite the global adverse adversities arising from business tension, geopolitical instability and external uncertainties, India’s large economic infrastructure remains strong. It is helping with strong domestic demand, fiscal discretion and monetary support. India will remain one of the fastest growing major economies.

Professional Forecasters like S&P, ICRA and Reserve Bank of India (RBI) have projected to stay between GDP growth rate 6.2 percent and 6.5 % for FY 26 in their survey. The report further stated that in the first quarter of FY 2026, India’s economic activity was based on strong domestic demand, service sector growth and encouraging signs from manufacturing and agriculture.

Income of rural families will increase

The report also mentions encouraging progress in the agriculture sector due to favorable monsoon. It said, “The favorable south-west monsoon has given a significant boost to agricultural activities, which has come ahead of time and has received more than normal rainfall.

Along with this, due to adequate fertilizer availability and healthy level of reservoirs, kharif crop is expected to be good. Citing NABARD’s Rural Bhavna Survey, the ministry said, “More than 74.7 percent of rural families are expecting their income growth next year, which is the highest since the start of the survey.”

It was also told in the report that even on the inflation front, things remain better, which has given some relief to the policy makers. The ministry said, “The core inflation remains low and overall inflation is far below the RBI’s 4 percent target, which leads to scope for decrease in inflation.”

Warning given in this report

According to the report, Outlook for FY 26 remains roughly positive, but does not ignore the review risks. It warns, “The global recession, especially in the US (which shrunk 0.5 percent in the first quarter of 2025), can reduce the demand for Indian exports.” The Ministry also warned about filling excessively on real GDP estimates in view of wholesale deflation.

Also read:

These big changes going to be held from August 1, know how much effect it will affect your pocket?

HSBC’s Flash India Composite Purchasing Manners’ Index: During the last fourteen months, the private sector has seen a tremendous pace in the month of June. This has been revealed in a survey conducted by HSBC and S&P Global. The reason for this is the rapid increase in international and domestic orders. India Composite PMI was 59.3 in the month of May, which increased to 61 in June. This is a consecutive century month when its index is above 50.

In case of living above 50, it is believed that business has grown. It is considered a decline if it remains below it. HSBC Flass India Manufacturing PMI was 57.6 in the month of May, which increased to 58.4 in June after a month. This is a great performance compared to the month of April 2024. It is believed that inventory, employment, production and new orders are behind this improvement.

Great speed in service sector

According to Pranjul Bhandari, Chief India Economist of HSBC, India’s private sector has moved forward in the month of June. The survey said that due to demand and increase in demand and backlog, companies have hiring in the month of June. Apart from this, the increase in international Dimang and orders is also one of the reasons.

On the one hand, while both part and fulltime in the manufacturing sector increased the jobs, on the other hand, the trend of hiring in the service sector is a positive but it is a bit weak.

Flash PMI report has been prepared with 85-8 percent feedback of eight hundred companies. However, the final report of the manufacturing PMI will be released on July 1 while the Composite and Service Report will be released on July 3. It is believed that due to investment in efficiency, demand and technology, outpur is seeing a great boom.

Also read: Even if Iran stops ‘Straight of Hormuz’, it will not affect India’s oil supply, know how to know how

Donald Trump Tariff on India: US President Donald Trump on Wednesday (April 2) announced a policy of imposing heavy tariffs on several countries like India, China, Japan and European Union, announcing ‘Liberation Day’ at the Rose Garden of the White House. Under this new policy, 26 percent tariffs will be imposed on products imported from India.

Announcing ‘Mukti Divas’ at the Rose Garden of the White House, Trump said that my fellow Americans, this is the liberation day, which had been waiting for a long time. 2 April 2025 will be considered as the day when the US industry was reborn, the fate of America has changed and we have started making America prosperous again.

Us President Donald Trump Imposes 26% “Reciprocal Tarifs” on India, Followed by 34% On China, 20% On Eu, and 24% on Jap pic.twitter.com/0uhlScksov

– ANI (@ani) April 2, 2025

Why was a tariff imposed on India?
Trump described Prime Minister Narendra Modi as his best friend. However, he said that despite this, India is not treating America properly. He alleged that India imposes 52 per cent fees on US products, so the US will also impose 26 per cent tariffs in return.

Which countries were affected?
Under Trump’s new ‘reciprocal tariffs’ policy, many countries have been imposed:

Country tariff (%)
India 26%
China 34%
European Union 20%
Japan 24%
Taiwan 22%
Israel 17%

What will be the effect of the new tariff policy?
Trade between India and the US has already been under stress over many issues. This tariff can make trade in America for Indian companies. By levying more charges on Indian products, American consumers may have to buy expensive goods. Many American companies, which import raw materials or finished products from India, can also increase the cost.

Possibility of international trade war
India and other affected countries can take retaliation and increase tariffs on American products. This can create a global trade war situation. However, Trump claims that this tariff will revive the US economy. He says that these tariff policies are really good. We had planned to impose even more fees, but we kept it low. However, many economists believe that this policy can damage the US economy as it can weaken global trade relations.

Us Donald Trump Tariff on India: According to a new report by CARAEGE ratings, India may face export losses of $ 3.1 billion (about Rs 25,700 crore) due to a possible new tariff to be declared by US President Donald Trump. This figure is equal to about 0.1 percent of India’s GDP (GDP), which can become a matter of concern for the Indian economy.

According to Smita Rajpurkar, director of CARAIGE Ratings, increasing tariffs may have a serious impact on India’s major export areas, including many areas. For example, textile and garment industry, automobiles and auto parts include IT and pharmaceuticals. Explain that a huge amount of cloth is exported to America from India, which will be affected by increasing tariffs. The Indian auto sector is already facing recession, so it can be further affected by the new tariff. India’s IT and pharmaceutical companies make good profits from the US market. Increasing tariffs will increase cost, which can reduce the competitive capacity of Indian companies.

Possible impact of tariff on India
If US President Donald Trump announces a tariff on India, then many types of major effects can be seen, which is not being considered right for the Indian economy in any way.

Exports fall: Increased tariffs will cost Indian companies to send goods to America, which can reduce their demand.
Putstation in currency: Indian rupee can weaken due to increasing business tension with America, which will make imports expensive and inflation can increase.
Investment reduction: Global investors can avoid investing in India due to increasing trade stress, which can affect Indian stock market.
Business war threat: The report also warns that if the global trade war broke out, it can increase the instability in the Indian economy and negatively affect financial stability.

Can India overcome this crisis?
India will need to adopt some strategies to overcome this crisis, such as focus on other export markets. Along with this, insisting on increasing trade with Europe, Africa and Asian countries by reducing dependence on America. The local industry will have to provide subsidy and tax relief so that they can withstand the impact of the new tariff and maintain competition. India will have to talk to the US on new business treaties, so that economic balance can be maintained.