Nvidia Reclaims World's Most Valuable Company Title, Surpassing Microsoft With 344.6 Billion Dollars Market Cap

Nvidia (NVDA.US) has once again secured the position of the world's most valuable publicly traded company, surpassing Microsoft (MSFT.US) with a market capitalization of 344.6 billion dollars at the close of trading on Tuesday. This achievement marks the second time Nvidia has held this title, having previously done so in January. The company's market capitalization surpassed Microsoft's 344.1 billion dollars, highlighting its strong performance in the market.

Nvidia's journey to reclaiming the top spot has been driven by the surging demand for its graphics processing units (GPUs), which are integral to data centers and the burgeoning field of artificial intelligence. Over the past five years, Nvidia's stock price has soared by nearly 1500%, with a 22% increase in the past 12 months alone. This remarkable growth underscores the company's pivotal role in the technology sector, particularly in areas requiring advanced computing power.

In its latest financial report released at the end of May, Nvidia reported first-quarter revenue of 44.1 billion dollars, a 69% year-over-year increase and a 12% sequential growth. This performance exceeded market expectations, driven largely by its data center business, which generated 39.1 billion dollars in revenue, a 73% year-over-year increase. The gaming division also saw significant growth, with revenue reaching 3.8 billion dollars, a 42% year-over-year increase and a 48% sequential growth, setting a new historical high.

However, Nvidia's financial report also highlighted challenges, particularly related to export restrictions. The new H20 export controls implemented in April resulted in a 7 billion dollars loss for the company, including excess inventory, procurement obligations, and expected revenue reductions. Nvidia anticipates that these restrictions will continue to impact its financial performance, with an estimated 8 billion dollars in revenue loss for the second quarter of the 2026 fiscal year.

Despite these challenges, Nvidia's strong financial performance and leadership in the GPU market have positioned it as a key player in the semiconductor industry. The company's ability to navigate regulatory hurdles and maintain its market dominance underscores its resilience and strategic prowess. As the demand for advanced computing solutions continues to grow, Nvidia is well-positioned to maintain its leadership role in the global market.