Nvidia Surpasses Microsoft to Become the Most Valuable Company Again

AI chipmaker Nvidia Corp again became the world's most valuable company on Tuesday, June 3. This was the company's first reclaim of the top spot since January 24.

NVIDIA's share price ended Tuesday with a market valuation of $3.45 trillion, edging past Microsoft’s $3.44 trillion.

Despite problems with export limits and high taxes, Nvidia has not lost its upward growth trend. During the past month, the stock has increased by 24%. Nvidia's strong rebound and sustained upward momentum over the past two months have added $1 trillion to its market capitalisation..

Nvidia’s Latest Quarterly Results for 2025

The company's most recent quarterly report showed $44.06 in revenue, an increase of 69%, and EPS of $0.96 that also surpassed analysts’ expectations. This was mainly due to firms using AI chips, including OpenAI.

The earnings report cleared up investors’ main concerns about U.S. restrictions on advanced chip sales to China, the influence of these restrictions on the growth of AI-related investments and limits to the company’s ability to make its Blackwell chips.

After the latest rise, Nvidia is selling for approximately 29 times its expected earnings for the coming year, which is lower than its usual 34 times. On the other hand, the Nasdaq 100 costs 26 times what analysts predict its earnings, which is less than what is projected for Nvidia.

Compared to growth, Nvidia’s valuation is the lowest among the “Magnificent Seven” tech giants, including Apple, Amazon, Alphabet, Tesla, and Meta.

Nvidia received 13% of its income from China last quarter, but high tensions between the United States and China pose a risk for the future. The risk has been lowered with the recent deals it secured in the Middle East during Macron and Trump’s visit.

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