India, Oct. 29 -- Nvidia has become the world's first company to hit a $5 trillion market valuation, achieving the milestone barely three months after it crossed the $4 trillion mark.

However, concerns are mounting about a potential AI-driven market bubble. Earlier this month, officials at the Bank of England warned that soaring tech stock valuations could face a sharp correction. The International Monetary Fund chief echoed similar concerns about overheating in the AI sector.

Nvidia's meteoric rise is largely fuelled by explosive demand for its AI chips, propelling its stock price sharply upward since early 2023.

Nvidia is also partnering with the U.S. Department of Energy to build seven new AI supercomputers, expanding America's high...