NVIDIA’s recent stock movement has been quite interesting. In late April, NVIDIA’s stock surged more than 4% in a single day, and its market capitalization reportedly surpassed $5 trillion for the first time in about six months.

Thinking about it, this doesn’t seem like a coincidence. AI demand is exploding worldwide, but the supply of high-performance AI chips is critically short. While the semiconductor market itself is approaching a $1 trillion scale, what’s truly needed are high-performance GPUs made by companies like NVIDIA.

The interesting part is that the rise in NVIDIA’s stock isn’t just due to a simple supply shortage. As generative AI rapidly spreads, application development has surged, driving a sharp increase in computing power consumption. As a result, rental prices for high-performance GPUs rose rapidly, and cloud service and hardware costs climbed as well. This created a vicious cycle that further deepened the shortage of computing power.

That said, there are also some intriguing recent changes. In Korea, high-performance large-scale models such as DeepSeek-V4, which are compatible with Huawei’s Ascend computing power, have been officially released. As the domestic computing power ecosystem matures quickly, the competitive landscape in a market that NVIDIA has effectively dominated may become more contested.

Ultimately, NVIDIA’s stock breaking past $5 trillion seems to reflect the current imbalance between AI chip supply and demand. However, in the long term, it’s likely that we’ll need to watch how competitors’ technological advancements and market entry will affect the landscape. I believe NVIDIA’s stock movements will continue to be an important indicator of changes in the competitive dynamics of the AI industry.