Nvidia’s shares surged by over 3% on Wednesday, marking a significant achievement as the company became the first to surpass a $5 trillion market valuation.

This impressive feat highlights Nvidia’s incredible journey from being a specialized video game processor developer to becoming a key player in the burgeoning artificial intelligence sector.

After closing with a 5% increase on Tuesday, Nvidia’s stock has soared more than 50% since the beginning of the year.

The recent uptick in value follows CEO Jensen Huang’s announcement of $500 billion in anticipated AI chip orders and the company’s plan to construct seven new supercomputers for the U.S. government.

Separately, Nvidia announced Tuesday that it is taking a $1 billion stake in Nokia, forming a strategic partnership with the networking company to develop next-generation 6G cellular technology.

U.S. stocks, fueled by the AI trade, climbed to record highs on Tuesday. The major averages were boosted by gains in tech, with Apple and Microsoft both reaching a market value of more than $4 trillion after their shares rose.

The dizzying rally for U.S. stocks comes despite lingering concerns over a bubble, particularly as AI-driven spending has led to record deals and valuations.

Earlier in the month, the International Monetary Fund and Bank of England became the latest financial institutions to warn that global stock markets could be in trouble if investor appetite for AI turns sour.

Ark Invest CEO Cathie Wood on Tuesday flagged the near-term possibility of a “reality check” on AI valuations — but pushed back on fears of an AI bubble.

“If our expectations for AI … are correct, we are at the very beginning of a technology revolution,” Wood told CNBC on the sidelines of Saudi Arabia’s Future Investment Initiative in Riyadh.