Nvidia surged ahead of Microsoft on Tuesday, reclaiming its place as the world’s most valuable publicly traded company for the first time since January. The AI chipmaker’s impressive market climb underscores the growing dominance of artificial intelligence in global tech markets.
Shares in Nvidia jumped about 3% to $141.40, pushing its market capitalization to $3.45 trillion — just edging out Microsoft’s $3.44 trillion. This milestone highlights Nvidia’s remarkable growth, driven largely by demand for its AI chips powering applications like OpenAI’s ChatGPT and other advanced software.
A Rapid Rise Fueled by AI Chips
Nvidia’s rebound to the top is no coincidence. Over the past year, its stock has bounced between the top three most valuable companies, trading places with Microsoft and Apple. Since late May, Nvidia’s shares have climbed nearly 24%, a hefty gain that’s sustained despite concerns over export controls and tariffs that have affected the broader semiconductor sector.
Last week’s quarterly report laid bare the company’s momentum: Nvidia posted 96 cents in adjusted earnings per share on $44.06 billion in revenue — a stunning 69% jump year-over-year. For a company already this large, such explosive growth is rare and signals deep-rooted demand for Nvidia’s products.
At the heart of this surge? AI chips. These specialized processors are central to building the massive computational power needed for training and running artificial intelligence models. Companies like Microsoft, Google, Meta, Amazon, Oracle, and xAI have all snapped up Nvidia’s accelerators in massive quantities to build sprawling AI infrastructures.
The Chip Industry’s Broader Rally
Nvidia’s win also boosted the chip sector as a whole on Tuesday. Alongside Nvidia’s 3% jump, Broadcom shares rose 3%, while Micron Technology gained 4%. The VanEck Semiconductor ETF, which tracks a basket of chip stocks, climbed 2%. This collective boost reflects optimism about the semiconductor industry’s crucial role in powering future tech.
It’s interesting to see how Nvidia’s chips, originally designed for 3D gaming graphics back in 1993, have found a new lease on life. Their architecture turns out to be perfect for the parallel processing demands of AI, something that was only fully realized in recent years.
A Tug of War Among Tech Giants
The battle for the crown of the most valuable company isn’t new, but Nvidia’s rapid ascent is remarkable given its history. Microsoft and Apple have long dominated this race, with their massive software ecosystems and consumer products. Nvidia, originally a gaming chip company, is now a pivotal player in the AI revolution, shifting its role dramatically.
Market watchers have been tracking these shifts closely, as the stakes for AI leadership—and the chips that power it—are sky-high. Nvidia’s close call with Microsoft, and Apple’s intermittent presence near the top, shows just how fast tech leadership is evolving.
| Company | Market Cap (Trillions USD) | Key Driver |
|---|---|---|
| Nvidia | 3.45 | AI chips & data center growth |
| Microsoft | 3.44 | Cloud computing & software |
| Apple | 3.30 | Consumer electronics |
What’s Next for Nvidia?
Nvidia CEO Jensen Huang recently visited the Lawrence Berkeley National Lab to announce a U.S. supercomputer powered by Nvidia’s upcoming Vera Rubin chips. This signals the company’s continued push into high-performance computing, beyond just AI.
But, can Nvidia keep up this pace? The semiconductor industry faces potential hurdles, like export restrictions and increasing competition. Yet, Nvidia’s current streak suggests the company’s tech and business strategies are firing on all cylinders.
Interestingly, Nvidia’s story is also a reminder of how quickly technology companies can reinvent themselves. From making gaming chips in the early ’90s to becoming the backbone of the AI boom — that’s quite a pivot!
So, while the competition stays fierce, Nvidia is riding the AI wave with confidence — for now, at least.
