Nvidia Corp, the global leader in AI chip manufacturing, reclaimed the title of the world’s most valuable company on June 3, 2025, overtaking tech giant Microsoft. With a closing market capitalization of $3.45 trillion, Nvidia edged just ahead of Microsoft’s $3.44 trillion, making this the first time since January that it has held the top spot.
The remarkable rise in Nvidia’s valuation has been driven primarily by its dominant position in the AI hardware space. The company’s stock has witnessed a 24% rally in just the last month, fueled by investor optimism around artificial intelligence adoption across industries. Over the past two months alone, Nvidia’s market cap has surged by $1 trillion, underlining the market’s confidence in its growth trajectory.
The company’s financial performance has played a critical role in this ascent. In its most recent quarterly earnings report, Nvidia posted a massive 69% jump in revenue, reaching $44.06 billion. Earnings per share (EPS) came in at $0.96, exceeding analysts’ expectations. These strong numbers reflect the soaring demand for Nvidia’s advanced AI chips, which are increasingly used by major players in the tech ecosystem, including OpenAI.
Despite concerns about potential regulatory restrictions on chip exports to China, Nvidia’s earnings helped ease investor anxiety. Around 13% of the company’s revenue last quarter came from China. However, strategic efforts such as supply agreements with countries in the Middle East have helped Nvidia diversify and cushion the impact of ongoing U.S.–China tensions.
Interestingly, Nvidia still trades at a valuation multiple of approximately 29 times its projected earnings for the next fiscal year—lower than its 10-year average of 34. In comparison, the Nasdaq 100 index trades at 26 times earnings, despite expectations of significantly lower growth among its constituents. Nvidia’s Price-to-Earnings-to-Growth (PEG) ratio stands below 0.9, making it the lowest among the “Magnificent Seven” tech giants—Apple, Amazon, Alphabet, Tesla, Meta, Microsoft, and Nvidia.
This valuation balance suggests that despite its historic rally, Nvidia may still offer compelling value for growth-focused investors. Analysts view the company as being at the heart of the ongoing AI revolution, with its chips powering everything from large language models to autonomous systems and data centers.
Nvidia’s leadership in developing cutting-edge chip architectures—such as the newly launched Blackwell series—further strengthens its position. These chips are expected to dramatically increase processing efficiency, driving even broader adoption of AI technologies.
In conclusion, Nvidia’s return to the top of the corporate world reflects more than just investor enthusiasm—it signifies a broader shift in the global tech landscape. As artificial intelligence continues to shape the future of industries and economies, Nvidia appears poised to remain at the forefront, delivering both innovation and impressive financial performance.
