NVIDIA reclaims crown as world’s most valuable company

The artificial intelligence (AI) chipmaker’s shares rose by 3% to $141.40, extending a month-long rally that has seen the stock climb nearly 24%.

The milestone marked a return to the top for NVIDIA, which has jostled with Apple and Microsoft for the number one position since June 2024. The last time it held the crown was on 24^th January. Microsoft, which finished Tuesday with a $3.44 trillion market cap, fell just short of NVIDIA’s valuation surge.

The latest boost came after NVIDIA posted first-quarter revenue of $44.1 billion, up 12% from the previous quarter and 69% higher than the same period in 2024. The strong performance reflected sustained demand for AI infrastructure, which continues to drive unprecedented growth across the semiconductor sector.

NVIDIA was not alone in lifting the markets. Other chipmakers also saw gains, with Broadcom up 3%, Micron Technology climbing 4%, and the VanEck Semiconductor ETF – tracking a broad portfolio of chip stocks – rising 2%.

Despite its record-breaking quarter, NVIDIA faced notable headwinds. On 9^th April 2025, the US government informed the company that new export licences would be required for sales of its H20 AI chips to China. This regulatory change prompted a $4.5 billion charge related to excess inventory and supplier obligations, after demand dropped significantly. Before the controls took effect, NVIDIA had reported $4.6 billion in H20-related sales, but an additional $2.5 billion in expected revenue could not be realised due to the restrictions.

NVIDIA’s rapid rise has been fuelled by its dominance in AI compute hardware, cementing its status as a critical supplier for Cloud providers, data centres, and large-scale model training. However, the export control developments underline the geopolitical risks facing the semiconductor industry, particularly in the high-stakes AI race.