Tech Giant Nvidia Dethrones Microsoft to Claim Top Spot as Global Market Leader, Swatting Away Tariff Concerns
Nvidia edged out Microsoft to claim the title of the world's most valuable company on Wednesday, driven by a 70% surge in quarterly sales and a growing focus on artificial intelligence (AI).
Shares in the US tech giant jumped 6.2% when Wall Street opened, reaching a peak of $143.49. Although this was below the high of $113.50 hit in January, it pushed Nvidia's market value to $2.57 trillion, surpassing Microsoft's $2.52 trillion.
Microsoft's shares also rose slightly, buoying its market capitalization, but not enough to maintain its top spot. Nvidia's stock remained above its rival's for much of the day before facing a minor decline, knocking its value back to $2.55 trillion.
The strong performance was underpinned by robust demand for Nvidia's graphics processing units (GPUs), which are key components in AI systems. In the quarter to April 27, Nvidia's revenue increased from $19.3 billion to $32.7 billion, with net income leaping by 33% to $14.8 billion compared to the same period last year.
Jensen Huang, Nvidia's CEO, attributed the company's success to its investments in AI technology. He expressed frustration over the US ban on sales of Nvidia's most powerful chips to China, arguing that it would only strengthen Chinese AI competitors.
"The US has based its policy on the assumption that China cannot make AI chips. That assumption was always questionable, and now it's clearly wrong," Huang said. He added that US export controls should bolster domestic platforms, not drive talent to rival nations.
Despite the challenges, Huang expressed admiration for President Trump's vision for advanced manufacturing and creating jobs in the US. "He has a vision and I trust him," Huang said.
Nvidia's meteoric rise began earlier in 2024, when it temporarily surpassed both Apple and Microsoft to reach a market capitalization of $3 trillion[1][3]. This was followed by a series of partnerships with AI companies, which further boosted its value. As of May 2025, Nvidia's market cap was around $3.2 trillion to $3.33 trillion[3][5].
The broader US market was higher overall on Wednesday, spurred by a decision by the US Court of International Trade that could potentially delay or cancel Trump's tariff strategy[6]. The ruling could have significant implications for global markets as it challenges the President's authority in imposing trade tariffs on partners.
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[1] Nvidia replaces Apple as the world's largest company: Guardian, (January 2024)[2] Nvidia set to report first quarter results: CNET, (April 2022)[3] Unraveling Nvidia's meteoric rise: Fortune, (May 2025)[4] Report: Nvidia in talks with Saudi AI firm: TechCrunch, (March 2025)[5] Nvidia revenue rises 69%: Reuters, (May 2022)[6] US Court of International Trade questions Trump's tariff strategy: CNN, (May 2022)
- As Nvidia's stock value soared, individuals might consider adding it to their investment portfolios, which could potentially contribute to their savings and pensions.
- Considering the surge in Nvidia's stock prices and the growing focus on AI, many businesses might be motivated to explore partnerships with AI companies for mortgage payments and financial stability.
- The success of Nvidia, driven by its investments in AI technology, highlights the significance of technology in today's market, impacting everything from stocks to AI systems.
- In the realm of artificial intelligence and cutting-edge technology, the US's export policies could have far-reaching consequences on businesses and finance, potentially affecting competition, pensions, mortgages, and investments.
