Nvidia shares surged approximately 20% over seven trading sessions, adding more than $900 billion in market capitalization and closing in on an unprecedented $6 trillion valuation. The rally, fueled by a global investment boom in AI infrastructure, has lifted the Philadelphia Semiconductor Index by nearly 70% over the same period, with Intel, Micron, and other chip stocks posting strong gains. CEO Jensen Huang was added at the last minute to President Trump’s delegation visiting China, underscoring his global influence. However, Nvidia and Micron alone have accounted for more than 30% of the S&P 500’s gains year-to-date, raising concerns that an AI bubble may be forming. The same day, AI chip startup Cerebras Systems surged as much as 109% on its trading debut, further evidence of the market’s feverish appetite for AI assets.
Nvidia shares surged roughly 20% over the past seven trading sessions, adding more than $900 billion in market value as the AI chip giant races toward a $6 trillion valuation at an unprecedented pace. The company is scripting a valuation legend with no parallel in the history of global capital markets, even as it ignites fierce debate over whether an AI bubble could burst at any moment.
During morning trading on May 15 local time, Nvidia shares briefly spiked 4.7% to hit an all-time high of $236.47. According to South Korea’s Maeil Business Newspaper, the stock was still showing strong upward momentum at around $235.76 as of roughly 3:40 a.m. Korea time. This seven-session rally has added over $900 billion to Nvidia’s market capitalization, bringing it within striking distance of a $6 trillion valuation — a height no publicly traded company has ever reached.
The surge is widely interpreted as the latest example of investors placing concentrated bets on AI winners. With global tech giants plunging into the race for generative AI services and making aggressive investments in data centers and AI servers, Nvidia — by virtue of its dominant position in the graphics processing unit (GPU) market essential for AI training and inference — has become the central hub through which vast amounts of capital are flowing.
Semiconductor Sector Joins the Party
Nvidia’s surge is not an isolated phenomenon. The Philadelphia Semiconductor Index has soared nearly 70% since late March, reflecting remarkable exuberance across the semiconductor space. Intel, Micron Technology, Advanced Micro Devices (AMD), and Broadcom have all recorded substantial gains.
Market analysts note that a “winner-takes-all” dynamic is intensifying in AI, with investors concentrating capital in companies poised to directly benefit from the AI ecosystem. The semiconductor industry sits at the very heart of this wave.
Nvidia CEO Jensen Huang’s recent itinerary has added further intrigue. He was added to U.S. President Trump’s delegation to China at the last minute. At a sensitive moment when the U.S. and China are locked in intense rivalry over AI and semiconductors, Huang’s presence was interpreted by markets as a signal of Nvidia’s growing global influence.
AI Bubble Concerns Mount in Tandem
Yet the sheer scale and velocity of the rally have also sparked deep unease among some market participants, who fear U.S. equities are being inflated by an AI bubble that could rupture at any time.
Data compiled by Bloomberg reveals a sobering fact: Nvidia and Micron Technology alone have accounted for more than 30% of the S&P 500’s gains year-to-date. This means the upward momentum of the entire U.S. benchmark index is heavily concentrated in a tiny handful of AI-linked names — a degree of concentration that has historically signaled potential market fragility.
The fervor was on full display in the IPO market the same day. AI chip startup Cerebras Systems made its trading debut on Thursday, completing the largest initial public offering so far this year. Investor demand was overwhelming, with the stock at one point surging 109% on its first day, a testament to the market’s near-insatiable appetite for AI chip assets.
Capital Flood and the Risk Calculus
Nvidia’s current valuation has far surpassed what traditional valuation frameworks can explain. A $6 trillion market capitalization would exceed the annual gross domestic product of the vast majority of nations — a scale with no precedent in the history of publicly traded companies.
Proponents argue that the AI infrastructure super-cycle has only just begun, and that global corporate demand for data centers and AI computing power will continue to explode for years to come, cementing Nvidia’s unassailable position as the core supplier of computational horsepower. Skeptics, however, warn that concentration risk in the current market has reached dangerous levels. Should AI application deployment fall short of expectations, or should the macroeconomic environment shift, the magnitude of any valuation correction could be equally breathtaking.
From the surge in the Philadelphia Semiconductor Index, to the doubling of Cerebras Systems on its trading debut, to the political signaling of Huang accompanying the president abroad, the evidence is mounting that the AI chip sector now stands at the intersection of three powerful forces: capital, technology, and geopolitics. Whether this rally ultimately ushers in a new era of productivity revolution or replays the dot-com bubble script of the turn of the century is a question the market now waits to answer, holding its breath at a historic crossroads.
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