Finance
AI boom drives trillion-dollar tech valuations and record bets on chipmakers
Published by Global Banking and Finance Review
Posted on October 30, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 30, 2025
2 min readLast updated: January 21, 2026
The AI boom is driving tech valuations to new heights, with Nvidia reaching $5 trillion. Major investments in AI chips and infrastructure are fueling this growth.
(Reuters) -Top technology companies hit fresh valuation milestones in October, as their shares climbed on expectations of robust demand for AI chips and computing infrastructure driven by the artificial intelligence boom.
Nvidia’s shares jumped nearly 11% over the past month, adding about $500 billion in market value as it became the first company to reach a $5 trillion valuation. Chief Executive Jensen Huang this week announced $500 billion in AI chip orders and plans to build seven supercomputers for the U.S. government.
Tech shares have risen sharply on optimism over AI’s potential and a series of partnerships and deals with major global companies, including OpenAI, Oracle, Nokia and drugmaker Eli Lilly.
Microsoft and Apple also reached $4 trillion market valuations by end-October, just over three months after Nvidia’s surge to that level in July.
Microsoft reported record capital spending of nearly $35 billion for its fiscal first quarter on Wednesday and said it expects investments to rise further this year
Broadcom gained 17% over the past month to reach a $1.82 trillion valuation, while TSMC added 15% to $1.28 trillion and Alphabet climbed 13% to $3.32 trillion.
The market value-to-capital expenditure ratio for semiconductor firms stood at 75.1, the highest among all global sectors, suggesting investors expect strong returns from the heavy AI-related spending by chipmakers.
The market values of Berkshire Hathaway, JPMorgan Chase and Tencent Holdings fell 5.4%, 3.1% and 2.5% over the past month to $1.03 trillion, $840 billion and $760 billion, respectively.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru. Editing by Mark Potter)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. AI technologies are increasingly being used in various sectors, including finance, to enhance decision-making and operational efficiency.
Chipmakers are companies that design and manufacture semiconductor chips used in electronic devices. These chips are essential for powering computers, smartphones, and various other technologies, including those used in artificial intelligence.
Market valuation is the process of determining the worth of a company based on its current share price and the total number of outstanding shares. It reflects investor perceptions and expectations about the company's future performance.
Capital expenditure (CapEx) refers to the funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. It is a crucial aspect of financial planning and investment strategy.
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