Nvidia zooms ahead, snatching top spot from Microsoft with 3% stock jump

Nvidia has reclaimed the title of the world’s most valuable publicly traded company, edging out Microsoft after a 3 per cent surge in its stock price on June 3.

Shares of the AI chipmaker closed at $141.40, pushing its market capitalisation to $3.444 trillion, according to Nasdaq data—just ahead of Microsoft’s $3.441 trillion, Caliber.Az reports via foreign media.

The milestone marks Nvidia's return to the top spot, which it last held on January 24. Over the past year, the company has been locked in a tight race with Microsoft and Apple for dominance in market value. The recent jump in valuation follows Nvidia’s impressive first-quarter earnings report last week, which beat Wall Street expectations with $44.06 billion in revenue—a 69 per cent year-over-year increase.

Despite looming challenges, including an anticipated $8 billion drop in revenue due to new US export restrictions, investor confidence in Nvidia remains robust. The Biden administration’s latest controls have barred the company from selling its H20 chips—custom-built for China—cutting off a major market. CEO Jensen Huang criticised the export rules during Nvidia’s May 28 earnings call and in follow-up media appearances.

“On export control, China is one of the world's largest AI markets and a springboard to global success. With half of the world's AI researchers based there, the platform that wins China is positioned to lead globally,” Huang said.

“Today, however, the $50 billion China market is effectively closed to US industry.” “Export controls should strengthen US platforms, not drive half of the world's AI talent to rivals,” he added. 

Following the earnings call, Nvidia stock jumped nearly 5 per cent in after-hours trading. As of June 3, the company's shares had climbed nearly 24 per cent over the past month. Investor enthusiasm extended across the broader semiconductor sector this week. The VanEck Semiconductor ETF rose 2 per cent, while companies like Micron Technology posted gains of up to 4 per cent.

By Naila Huseynova