US – Nvidia reclaimed its position as the world’s most valuable publicly traded company on Tuesday, surpassing Microsoft in market capitalization amid surging investor confidence in its artificial intelligence (AI) chip dominance.
The AI chipmaker’s stock rose approximately 3% to close at $141.40, pushing its market valuation to $3.45 trillion. In contrast, Microsoft ended the day with a $3.44 trillion market cap. The milestone marks Nvidia’s return to the top spot, having last held the title on January 24. Over the past month, Nvidia’s shares have surged nearly 24%, driven by continued growth despite global trade concerns and regulatory hurdles.
Nvidia’s ascent comes amid a broader rally in semiconductor stocks. Broadcom saw a 3% gain, Micron Technology climbed 4%, and the VanEck Semiconductor ETF, a benchmark for chip companies, rose 2%.
The latest rally follows Nvidia’s blockbuster first-quarter earnings report last week, which revealed $44.06 billion in revenue and 96 cents in adjusted earnings per share—a remarkable 69% year-over-year growth. This performance is extraordinary for a company of Nvidia’s size and underscores its central role in the ongoing AI revolution.
Nvidia’s AI chips, particularly its accelerators, are the backbone of high-performance computing systems used in generative AI platforms like OpenAI’s ChatGPT. Major tech giants such as Microsoft, Meta, Google, Amazon, Oracle, and xAI are aggressively investing in Nvidia’s hardware to power massive AI infrastructure projects.
Founded in 1993 to develop graphics chips for 3D gaming, Nvidia has reinvented itself in the past decade. Its GPU architecture, originally built for rendering images, proved ideally suited for parallel processing, making it a foundational technology for modern AI development.
With AI demand continuing to skyrocket, Nvidia’s position as a critical supplier in the tech ecosystem has made it the centerpiece of investor optimism—and the world’s most valuable company.