Nvidia reclaims title as world’s most valuable company, surpassing Microsoft in AI-driven surge

New Delhi: Nvidia Corporation has once again claimed the title of the world’s most valuable publicly traded company, overtaking tech giant Microsoft with a market capitalisation of $3.45 trillion, edging out Microsoft’s $3.44 trillion. 

The milestone has come amid a continued rally in Nvidia’s stock, fueled by unprecedented demand for its artificial intelligence (AI) chips.

On Tuesday, Nvidia’s shares surged by approximately 3%, reaching a valuation that solidified its position at the top of the global market. This marks the second time this year that Nvidia has held the top spot, having briefly overtaken Microsoft on January 24, 2025, before being surpassed again. 

The chipmaker’s meteoric rise is driven by its dominance in the AI sector, with its high-performance GPUs powering applications from generative AI models to data centres for tech giants like OpenAI, Meta, Google, and Amazon.

Nvidia’s recent fiscal first-quarter earnings, reported on May 27, 2025, underscored its financial strength, with revenue soaring to $44.1 billion—a 69% year-over-year increase—and earnings per share of $0.96, exceeding Wall Street expectations. 

CEO Jensen Huang highlighted the global shift toward AI infrastructure, stating, “Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet.” This sentiment reflects Nvidia’s pivotal role in what Huang calls the “new industrial revolution,” with its chips enabling advancements in robotics, digital biology, and beyond.

The company’s stock has risen nearly 190% in 2024, following a 171% increase in 2023, driven by optimism around AI adoption across industries. Nvidia’s recent announcements, including plans for the Blackwell Ultra chip in 2025 and the Rubin AI platform in 2026, have further fueled investor enthusiasm. A 10-for-1 stock split in June 2024 also made shares more accessible, boosting retail investor interest.

However, Nvidia’s ascent has not been without volatility. Posts on X noted significant market cap losses on days like March 4, 2025, when the stock dropped 8.7%, shedding $250 billion in value, reflecting the high-stakes nature of its valuation. Analysts warn that while Nvidia’s dominance in AI chips is unmatched, potential competition and overhyped AI expectations could pose risks. 

Microsoft, previously the world’s most valuable company, has also benefited from the AI boom through its investment in OpenAI and AI integration into its Windows platform. However, Nvidia’s direct role in supplying the hardware backbone for AI has given it a slight edge in market perception. Apple, now third at $3.35 trillion, has faced challenges with weaker iPhone demand but remains a contender with its Apple Intelligence AI suite.