Nvidia surpasses Microsoft to become world’s most valuable company

Chipmaker giant Nvidia has once again reclaimed the world’s most valuable publicly traded company on Tuesday, surpassing Microsoft.

The stock saw a significant 24% surge over the past month. Nvidia’s share price ended Tuesday with a market valuation of $3.45 trillion, overtaking Microsoft’s $3.44 trillion.

Nvidia’s rebound and upward momentum over the past two months have boosted its market capitalisation by $1 trillion.

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Reason behind the company's rise

The chipmaker company’s rise is closely tied to its GPU-based AI accelerators, which have become central to AI infrastructure across industries. Companies such as OpenAI, Microsoft, Meta, Google, Amazon, Oracle and Elon Musk’s xAI are using Nvidia hardware for their generative AI and machine learning workloads.

Nvidia had briefly held the top spot earlier in January, competing with other tech giants, Microsoft and Apple.

Even after its sharp rise, the company is trading at about 29 times its projected earnings for the next year, still below its 10-year average of 34 times.

Comparatively, the Nasdaq 100 is valued at 26 times earnings, despite analysts forecasting significantly lower revenue growth than Nvidia’s.

About Nvidia

Founded in 1993 as a graphics chipmaker focused on video gaming, Nvidia gradually turned into the dominant player in AI computing.

Its GPU architecture, originally designed for high-performance gaming, has proven especially effective for training and utilising complex AI models at scale.

As of early June 2025, global market capitalisation rankings are as follows: [Source: Business Standard]

1. Nvidia: $3.45 trillion

2. Microsoft: $3.44 trillion

3. Apple: Nearing $4 trillion (currently third due to daily share fluctuations)

4. Alphabet(Google): $2.3 trillion

5. Amazon: $2.3 trillion

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