NVIDIA Reclaims Market Crown: AI Surge Drives Valuation Past $3.4 Trillion

On Tuesday, NVIDIA's (NVDA.US) market capitalization surpassed Microsoft's (MSFT.US), reclaiming the title of the world's most valuable publicly traded company. At market close, NVIDIA's valuation stood at $3.446 trillion, edging out Microsoft's at $3.441 trillion.

This is not NVIDIA's first time holding the top spot. Since June last year, NVIDIA, Apple (AAPL.US), and Microsoft have been alternating as the leaders in market capitalization rankings. NVIDIA last reached this position on January 24.

Driven by the surge in artificial intelligence, NVIDIA's GPU technology has become crucial for global data centers, affecting the rise of AI. In the past five years, NVIDIA's stock price has soared by nearly 1500%, with a 22% increase over the last twelve months.

NVIDIA reported first-quarter revenue of $441 billion, a 69% year-on-year jump, surpassing forecasts. The non-GAAP net profit was $199 billion, which saw a year-over-year growth of 26%. The data center business continues to be a primary revenue driver, with first-quarter sales reaching $391 billion, up 73% year-on-year.

Export controls have been a significant topic in NVIDIA's recent earnings report. New restrictions added in April affected a $70 billion financial impact this fiscal quarter, including surplus inventory, procurement commitments, and anticipated revenue losses. NVIDIA estimates its fiscal 2026 second-quarter revenue to be around $450 billion, factoring in a potential $80 billion loss due to these restrictions.

NVIDIA's remarkable performance also lifted the entire chip sector. Companies like Broadcom showed growth, reflecting the positive trend in the semiconductor market. Despite facing export control challenges, NVIDIA's stock performance demonstrates strong market confidence in its core business and growth prospects.

Over the past two months, NVIDIA's market cap rebounded by $1 trillion, which signifies sustained investor interest and the ongoing demand for its AI-powered services. This shift marks NVIDIA's return to the pinnacle in global market value rankings, a testament to its role as a leader in technology innovation.