Nvidia Corporation has once again overtaken Microsoft to become the world’s most valuable publicly traded company, with a market capitalization reaching approximately $3.45 trillion, narrowly surpassing Microsoft’s $3.44 trillion valuation. This marks the second time in 2025 that Nvidia has claimed the top spot, having previously held it briefly in January.
The surge in Nvidia’s stock price—rising about 3% to $141.40 on the day it reclaimed the crown—reflects a nearly 24% increase over the past month and a remarkable 45% climb since April lows. This rally has been fueled by robust demand for Nvidia’s AI-focused graphics processing units, which are integral to powering advanced artificial intelligence workloads for major tech companies including Microsoft, Meta, Google, Amazon, Oracle, and Elon Musk’s xAI.
Nvidia recently reported fiscal first-quarter earnings of $44.1 billion in revenue, a 69% year-over-year increase, and adjusted earnings per share of $0.96, surpassing Wall Street expectations. The company’s AI chips have become essential components for generative AI models and large-scale data centers, driving its rapid growth despite challenges such as U.S. export restrictions and tariffs.
The company’s CEO, Jensen Huang, emphasized the global shift toward AI infrastructure, comparing it to the fundamental importance of electricity and the internet, and highlighting Nvidia’s pivotal role in the ongoing technological revolution.
Nvidia’s resurgence has also positively influenced the semiconductor sector, with related companies like Broadcom and Micron Technology seeing stock gains, and semiconductor ETFs reflecting investor confidence in the AI-driven chip market.
This dynamic competition for market valuation leadership among Nvidia, Microsoft, and Apple has been ongoing since mid-2024, with Nvidia’s current lead underscoring the critical role of AI technology in shaping the future of the tech industry.
