Nvidia (NVDA) shares demonstrated a sharp increase, pushing the company’s market capitalization to a record $5.36 trillion. This surge followed a brief dip below the $5 trillion threshold earlier this year, as smart investors capitalized on the March pullback to build positions.

Currently, the company’s stock is up 18% year-to-date, significantly outperforming the S&P 500. Such a high valuation is driven by Nvidia’s dominant position in the graphics processing unit (GPU) market, which has become the critical building block for the development of generative artificial intelligence.

CEO Jensen Huang confirmed ambitious plans by introducing the new Vera Rubin architecture, set to succeed the Blackwell platform. Management forecasts that sales from these new chip lines alone could generate up to $1 trillion in revenue by 2027, reinforcing market confidence in long-term growth potential.

Investors are eagerly awaiting the first-quarter fiscal 2027 earnings report, scheduled for release on May 20. Wall Street analysts project a 79% sales increase compared to last year and earnings per share of $1.78, which could serve as another driver for the stock, despite concerns regarding market “overheating.”