Nvidia Stock(NASDAQ: NVDA) has officially reclaimed its spot as the world’s most valuable publicly traded company, overtaking tech giant Microsoft in market capitalization.
The AI chipmaker now sits at a staggering $3.45 trillion valuation, edging past Microsoft’s $3.44 trillion, following a 3% stock surge on Tuesday.
This historic milestone comes just days after Nvidia reported blowout fiscal Q1 earnings, driven by insatiable global demand for artificial intelligence infrastructure.
The company reported $44.06 billion in quarterly revenue, a 69% year-over-year increase, crushing Wall Street expectations. Earnings per share also beat forecasts at $0.96.
“Countries around the world are recognizing AI as essential infrastructure—just like electricity and the internet,” said Nvidia CEO Jensen Huang, emphasizing the company’s central role in the global AI transformation. “Nvidia stands at the center of this profound shift.”
AI Dominance Driving Growth
Nvidia’s explosive growth is powered by its dominance in the AI chip market, with an estimated 70% to 95% market share. Its Blackwell GPU architecture is now the cornerstone of enterprise AI development, with Microsoft deploying tens of thousands of these chips to support models like OpenAI’s ChatGPT.
The company’s data center segment—its biggest revenue driver—posted $39.1 billion in revenue, up 73% year-over-year. Gaming also grew by 42%, reaching $3.8 billion, while Nvidia’s automotive and robotics segments jumped 72% to $567 million.
Despite ongoing U.S. export restrictions to China, which caused $2.5 billion in lost sales and a $4.5 billion inventory charge, Nvidia maintains a bullish outlook. Without the China-related losses, revenue could have been nearly $8 billion higher.
Analysts Still See Big Upside
Wall Street remains highly optimistic. Morgan Stanley reaffirmed its “Overweight” rating on Nvidia, calling it a “unique opportunity” and the firm’s top semiconductor pick. Out of 44 analysts, 37 recommend a ‘Strong Buy’, with an average price target of $173—about 24% above current levels.
Driving this optimism is the shift toward reasoning AI models, which demand significantly more computing power than traditional chatbots. These models require massive infrastructure, fueling global investment in “AI factories” by tech giants and even sovereign nations.
Countries in the Middle East, Asia, and Europe are investing in AI platforms on a scale comparable to national electric grids. In the U.S., Nvidia is reshoring its chip and supercomputer manufacturing operations to meet exploding demand.
A New Industrial Era?
Nvidia’s role in what Huang calls the “new industrial revolution” positions it as more than just a chipmaker—it’s becoming an essential infrastructure provider in a digital-first world.
Its chips are powering everything from fast-food automation with Yum! Brands to advanced robotics in Taiwan’s semiconductor industry.
With AI adoption accelerating across nearly every sector, Nvidia’s growth trajectory appears far from over.