Nvidia has regained its position as the most valuable publicly traded company, surpassing Microsoft with a market cap of $3.45 trillion on Tuesday. This milestone comes after a 3% surge in Nvidia’s shares, reaching $141.40, reflecting a robust growth trajectory even amid export control and tariff concerns. The company’s stock has increased nearly 24% over the past month, underscoring its ongoing success, particularly in the AI sector.
Market Dominance and Stock Performance
On Tuesday, Nvidia edged out Microsoft, which closed with a $3.44 trillion market cap. This marks a continued rivalry between the two companies at the top of the market cap ranks, a battle that has been ongoing since June of last year. Nvidia last held the top spot in January 2025. The company’s market cap surge has been buoyed by the explosive demand for its AI chips, used by major players like OpenAI, Meta, and Google, to power advanced computing and artificial intelligence systems.
Strong Earnings Fueling Growth
In its fiscal first-quarter earnings report last week, Nvidia reported adjusted earnings of 96 cents per share on $44.06 billion in sales, marking an impressive 69% year-over-year growth. This exceptional performance for a company of Nvidia’s size highlights the growing influence and importance of AI in its business model. Nvidia’s chips, initially designed for gaming, have become critical to the AI industry, powering massive computing clusters for companies driving AI innovation.
AI Chips Leading the Charge
Nvidia’s growth is primarily attributed to the increasing demand for its AI accelerators, which are essential for developing complex AI models like OpenAI’s ChatGPT. Tech giants including Microsoft, Meta, Google, Amazon, Oracle, and xAI have been purchasing Nvidia’s AI chips in large quantities to support their AI infrastructure, fueling the company’s impressive revenue growth. Nvidia’s role in the AI sector has transformed it from a gaming chip manufacturer into a key player in the AI revolution.
From Gaming to AI Innovation
Founded in 1993, Nvidia initially focused on producing chips for 3D gaming graphics. However, as AI technology advanced, Nvidia’s chip designs, which were ideal for parallel processing, found a new purpose in AI research and development. This pivot has paid off handsomely, with Nvidia now playing a central role in powering AI advancements across various industries.
