Nvidia Reclaims Top Spot with 1500% Stock Surge, AI Demand Drives $3.446T Market Cap

Nvidia (NVDA.US) has once again claimed the title of the world's most valuable publicly traded company by market capitalization, surpassing Microsoft (MSFT.US). On Tuesday, Nvidia's market value reached $3.446 trillion, edging out Microsoft's $3.441 trillion. This achievement marks Nvidia's return to the top position, which it previously held as recently as January 24.

Nvidia's ascent to the top is driven by the surging demand for artificial intelligence and data center technologies. The company's graphics processing units (GPUs) have become integral to the development of AI and data center infrastructure, fueling its revenue growth. Over the past five years, Nvidia's stock price has soared by nearly 1500%, with a 22% increase in the past 12 months alone.

Nvidia's latest financial report, released at the end of May, underscores its strong performance. For the first quarter, the company reported revenue of $441 billion, a 69% year-over-year increase and a 12% sequential growth. Non-GAAP net income was $199 billion, up 26% year-over-year but down 15% sequentially. The data center business remained the primary revenue driver, generating $391 billion in the first quarter, a 73% year-over-year increase and a 10% sequential growth. The gaming business also performed well, with revenue reaching $38 billion, a 42% year-over-year increase and a 48% sequential growth, setting a new record.

However, Nvidia's financial report also highlighted challenges, particularly related to export restrictions. New export controls implemented in April, specifically the H20 restrictions, resulted in a $70 billion loss for the company this quarter. This loss includes excess inventory, procurement obligations, and expected revenue reductions. Nvidia anticipates a further $80 billion revenue loss in the second quarter of the 2026 fiscal year due to these export controls.

Despite these challenges, Nvidia's leadership in AI and data center technologies positions it strongly for future growth. The company's innovative approach and strategic investments in high-growth areas have driven its market value to unprecedented levels. As the demand for AI and data center solutions continues to rise, Nvidia is well-positioned to maintain its leadership in the semiconductor industry and sustain its growth trajectory.