Nvidia overtakes Microsoft to become world's most valuable company again

Fueled by record AI chip demand and soaring stock gains, Nvidia's market cap hits $3.45 trillion, taking the spot of the most valuable company from Microsoft

Nvidia has reclaimed the title of the world’s most valuable publicly traded company, surpassing Microsoft in market capitalisation amid growing investor enthusiasm for artificial intelligence (AI). This resurgence is driven by surging demand for Nvidia’s AI accelerators, which now underpin large-scale AI systems globally.

 

According to a CNBC report, Nvidia’s shares rose about 3 per cent to $141.40 on Tuesday, pushing its market value to $3.45 trillion. This edged past Microsoft, which closed at $3.44 trillion. Nvidia had briefly held the top spot earlier in January, as part of an ongoing tussle with Microsoft and Apple for tech sector dominance.

 

AI demand powers Nvidia’s semiconductor dominance

Nvidia’s ascent is closely tied to its GPU-based AI accelerators, which have become central to AI infrastructure across industries. Companies such as OpenAI, Microsoft, Meta, Google, Amazon, Oracle and Elon Musk’s xAI are deploying Nvidia hardware for their generative AI and machine learning workloads.

 

The rally in Nvidia’s stock on Tuesday coincided with broader gains across the semiconductor sector. Broadcom shares climbed 3 per cent, Micron Technology rose 4 per cent, and the VanEck Semiconductor ETF was up 2 per cent—demonstrating continued investor confidence in chipmakers riding the AI wave.

 

Nvidia sees record quarterly earnings amid AI growth

For the first quarter of 2025 (January 29 to April  27), Nvidia posted record revenue of $44.1 billion, marking a 69 per cent year-on-year increase. Its data centre segment alone brought in $39.1 billion—a 73 per cent rise—underlining Nvidia’s pivotal role in global AI infrastructure.

 

Founded in 1993 as a graphics chipmaker focused on video gaming, Nvidia has transformed into the dominant player in AI computing. Its GPU architecture, originally designed for high-performance gaming, has proven especially effective for training and deploying complex AI models at scale.

 

Tech’s market cap reshuffle: Nvidia leads the pack

As of early June 2025, global market capitalisation rankings are as follows:

1. Nvidia: $3.45 trillion
2. Microsoft: $3.44 trillion
3. Apple: Nearing $4 trillion (currently third due to daily share fluctuations)
4. Alphabet (Google): $2.3 trillion
5. Amazon: $2.3 trillion

 

Nvidia was the biggest global gainer in market capitalisation during 2024, reflecting the central role of AI in reshaping the tech landscape. The company’s dramatic rise underscores the scale of transformation underway as AI becomes embedded in nearly every major sector, with Nvidia at its core.