Nvidia Hits $5T Valuation, Meta Reports $50.1B Revenue

The artificial intelligence landscape is seeing significant developments, with Nvidia reaching an unprecedented $5 trillion market capitalization, surpassing Microsoft. This surge is fueled by the immense demand for its AI chips. Meanwhile, Meta is navigating investor concerns over its substantial AI development costs, despite reporting strong ad revenue of $50.1 billion. The company's increased investment in AI infrastructure is a key focus for its financial outlook. On the security front, Polygraf AI has secured $9.5 million in seed funding to enhance its AI security solutions, utilizing Small Language Model (SLM) technology to protect businesses from data leaks and detect fake content. President Trump is also slated to discuss export controls on Nvidia's advanced chips with China's Xi Jinping, a move aimed at easing trade tensions. Amidst this rapid growth, BCA Research warns of potential risks in the AI stock market, drawing parallels to the metaverse bubble, while stock futures dipped following tech earnings and concerns over Federal Reserve interest rates.

Key Takeaways

• Nvidia has achieved a historic $5 trillion market capitalization, becoming the first company to reach this valuation, driven by demand for its AI chips.
• Meta reported $50.1 billion in ad revenue but faces investor concerns regarding escalating costs for AI development and infrastructure.
• Polygraf AI secured $9.5 million in seed funding to advance its AI security solutions, including protection against data leaks and detection of fake content.
• President Trump plans to discuss export controls on Nvidia's advanced chips with Chinese President Xi Jinping to address trade tensions.
• BCA Research suggests a potential risk of an AI stock bubble, citing patterns similar to the metaverse bubble.
• Meta's CFO indicated that total expenses in 2026 will increase at a faster rate than in 2025, largely due to infrastructure costs.
• Polygraf AI's security solutions use Small Language Model (SLM) technology and can be deployed on-premise.
• Nvidia's market value surpassed Microsoft's, highlighting its dominant position in the AI hardware market.
• Concerns over Federal Reserve interest rates and tech earnings have led to a dip in stock futures.
• Palo Alto Networks has launched new AI-powered cybersecurity platforms to address the growing need for security in AI and cloud technologies.

Polygraf AI secures $9.5 million for advanced AI security

Polygraf AI, a company focused on AI security, has raised $9.5 million in seed funding. This money will help them improve their AI security solutions. The funding was led by Allegis Capital and included other investors. Polygraf AI uses special Small Language Model (SLM) technology to help businesses find and reduce risks from AI. Their platform prevents sensitive information from leaking, detects fake content, and helps meet regulations like GDPR and HIPAA. It can also find exposed data and redact sensitive information.

Polygraf AI raises $9.5 million for AI security solutions

Polygraf AI, an AI security company based in Texas, has raised $9.5 million in seed funding. This funding will help them protect AI systems in businesses and government from threats like deepfakes and data leaks. Allegis Capital led the funding round. Polygraf AI's unique Small Language Model (SLM) technology works on-premise, meaning it can be deployed locally for better control and transparency. This technology helps detect manipulated media and unusual data behavior in real time. The company plans to use the funds to improve its products, scale its operations, and expand globally.

Meta's Q3 earnings focus on AI and spending plans

Meta is expected to share important updates on its artificial intelligence (AI) efforts and capital expenditure (capex) during its third-quarter earnings call. Investors are closely watching Meta's AI ambitions and how it plans to make money from AI. Wall Street analysts are generally optimistic about Meta, anticipating positive news regarding AI progress, ad spending, Instagram Reels, and its devices. The company's earnings report is scheduled for release after the market closes, with an analyst call to follow. Bank of America analysts believe Meta's AI outlook will be crucial for investor sentiment.

Trump to discuss Nvidia export controls with China's Xi

President Donald Trump announced he will discuss export controls on Nvidia's advanced chips with Chinese President Xi Jinping. This discussion aims to ease trade tensions between the two countries. Nvidia's stock saw a significant rise, bringing its market capitalization close to $5 trillion. If the stock surge continues, Nvidia could become the first company to reach a $5 trillion market cap. Nvidia recently held its GPU Technology Conference in Washington D.C., where CEO Jensen Huang delivered a keynote. Trump also mentioned plans to lower tariffs on Chinese chemicals used to make fentanyl.

BCA Research warns of AI stock bubble risk

BCA Research suggests investors should watch for a 'metaverse moment' as a warning sign to sell AI stocks. This moment occurs when a major AI company announces increased spending on capital expenditures (capex) but its stock price falls. This situation could indicate that the speculative excitement around AI is fading. The AI trade has seen massive investment, with companies spending billions on AI infrastructure. BCA Research notes that the free cash flow of major cloud providers has declined, similar to patterns seen before the metaverse bubble burst. Additionally, speculative stocks that were boosted by the AI trade have recently sold off.

Nvidia valuation reaches $5 trillion milestone

Nvidia has reached an 'unimaginable' valuation of $5 trillion, becoming the first company to achieve this milestone. The chipmaker's market value hit $5.1 trillion by mid-morning on Wednesday, October 29, 2025. This surge is driven by high demand for its artificial intelligence (AI) chips. President Donald Trump is also set to discuss Nvidia's Blackwell AI chip with Chinese President Xi Jinping. Nvidia recently introduced a new system for connecting quantum computers and expanded its AI offerings. The company's success highlights the significant impact of AI on the global economy.

UK economy faces choices between Nvidia's growth and tax policy

Two major economic stories are currently dominating discussions: Nvidia's massive growth, making it the first $5 trillion company, and speculation about potential tax changes in the UK. Nvidia's value has surged by 50% this year, reflecting strong investor confidence in AI's transformative potential. Meanwhile, there is discussion about a possible 2p cut in National Insurance combined with a 2p increase in income tax, which could affect landlords and pensioners. The UK government is working on reforms to encourage future companies, but the economic benefits of AI are not yet widely seen in the real economy. Productivity estimates in the UK have also been downgraded.

Palo Alto Networks boosts security with new AI platforms

Palo Alto Networks has launched new cybersecurity platforms powered by artificial intelligence (AI), including Cortex AgentiX, Cortex Cloud 2.0, and Prisma AIRS 2.0. These launches follow acquisitions like Protect AI and CyberArk, showing the company's focus on AI and automation for better security. The growing use of AI and cloud technologies requires strong security solutions, which Palo Alto Networks aims to provide. The introduction of Cortex AgentiX specifically uses AI to improve security measures. These developments are expected to help Palo Alto Networks grow and lead in the cybersecurity market.

Stock futures dip after tech earnings, Fed rate concerns

Stock futures fell on Wednesday evening as investors considered Big Tech earnings reports and the Federal Reserve's interest rate decision. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all moved lower. Federal Reserve Chair Jerome Powell indicated that interest rates might not be cut again in December, causing market concern. Some analysts suggest that if AI-driven productivity increases faster than expected, the Fed might be forced to cut rates more than planned. Investors are also awaiting upcoming economic data. Chipotle shares dropped significantly after reporting weaker-than-expected sales and reduced consumer spending.

Meta shares drop on investor concerns over AI costs

Meta's shares fell due to investor worries about the company's increasing costs for artificial intelligence (AI) development. While Meta reported strong ad revenue of $50.1 billion, up 26% year-over-year, its earnings per share were significantly lower than expected. This was partly due to a one-time $15.9 billion tax charge related to President Trump's 'One Big Beautiful Bill Act'. The company is investing heavily in data centers and AI infrastructure, leading to concerns about the return on these investments. Meta CFO Susan Li stated that total expenses in 2026 will grow at a faster rate than in 2025, driven by infrastructure costs.

Nvidia closes above $5 trillion market cap

Nvidia became the first company to close above a $5 trillion market capitalization on Wednesday, surpassing Microsoft. The chipmaker's stock rose 5.16% to $1,359.71, reaching a market value of $5.003 trillion, while Microsoft's stood at $3.97 trillion. Nvidia's stock surge is driven by the high demand for its AI chips, essential for the artificial intelligence revolution. The company has become a leader in the AI hardware market, with its products highly sought after. This milestone highlights Nvidia's significant role in AI development and its position as one of the world's most valuable companies.

Sources

• AI Security Firm Polygraf Raises $9.5 Million in Seed Funding
• Polygraf AI: $9.5 Million Seed Funding Closed To Scale Enterprise AI Security Solutions
• Meta Q3 earnings updates: Investors eyeing AI and capex growth
• Trump Says He’ll Talk To Xi About Nvidia—Chipmaker’s Market Cap Edges Towards $5 Billion
• One warning sign says when you should sell AI stocks
• Nvidia Reaches ‘Unimaginable’ $5 Trillion Valuation
• Allegra Stratton: The Numbers of the Day Are 2p and $5 Billion
• What Palo Alto Networks (PANW)'s New AI-Powered Security Platforms Mean For Shareholders
• Stock futures move lower after tech earnings put focus back on AI trade: Live updates
• Meta Shares Fall as Costs for AI Concern Investors
• Nvidia becomes first company to close abover $5 trillion market cap