Nvidia becomes first-ever company to cross $5.5 trillion market value as analysts issued a ‘stock warning’ for May 21

Nvidia’s market value exceeded $5.5 trillion on May 13 after its shares climbed approximately 3% during afternoon trading, solidifying its position as the world’s most valuable company. The surge followed a nearly 20% increase in stock price over the past month, reaching around $220 per share, despite a low of $165.17 in late March. The company is set to release its first-quarter earnings for fiscal year 2027 on May 20, with analysts projecting $78 billion in revenue—up from $68 billion in the previous quarter, driven largely by its data center business, which generated over $62 billion. Nvidia has also expanded partnerships, including a deal with Meta to integrate its AI chips into Meta’s artificial intelligence operations. Analysts warned of a potential stock decline on May 21, citing Palantir as a cautionary example. Despite reporting an 85% revenue jump to $1.63 billion, Palantir’s shares fell over 8% in two days post-earnings. Investors may demand more than strong results to justify Nvidia’s valuation. CEO Jensen Huang’s net worth surged by $5.4 billion on May 13, reaching $196.1 billion, according to Forbes estimates. This increase placed him behind Meta’s Mark Zuckerberg and Oracle’s Larry Ellison but ahead of Dell’s Michael Dell. Huang was traveling with former US President Donald Trump to China for meetings with Chinese President Xi Jinping during the stock rally. The warning highlights investor expectations, with some analysts suggesting Nvidia’s growth may not be enough to sustain its record valuation. The company’s upcoming earnings report will be closely watched for signs of continued momentum in its AI-driven data center segment.