Charles Esther
Nvidia has reclaimed its position as the most valuable publicly traded company, surpassing Microsoft.
The AI chipmaking giant, led by CEO Jensen Huang, saw its stock rise 3% to close at $141.40 on Tuesday.
This surge gave Nvidia a market capitalization of $3.444 trillion, just edging out Microsoft’s $3.441 trillion, according to Nasdaq data.
Nvidia last held the top spot on January 24 and has been competing with Apple and Microsoft for the highest market cap since last June.
Strong Earnings Boost Nvidia’s Market Value
Nvidia’s rise came shortly after the company reported first-quarter revenues of $44.06 billion.
This figure exceeded Wall Street’s expectations and represented a 69% increase compared to the previous year.
Despite this strong performance, Nvidia expects to lose $8 billion in revenue next quarter.
This loss is due to new chip export control policies implemented by the Trump administration, which restrict sales of Nvidia’s H20 chips designed for the Chinese market.
Jensen Huang Voices Concerns About Export Controls
During the May 28 earnings call, CEO Jensen Huang expressed frustration with the export controls.
He emphasized China’s importance as a key AI market and talent hub, saying, “With half of the world’s AI researchers based there, the platform that wins China is positioned to lead globally.”
Huang criticized the restrictions as effectively closing the $50 billion China market to US companies.
He argued that export controls should strengthen American technology platforms rather than push AI talent toward competitors overseas.
Positive Market Reaction and Broader Chip Stock Gains
Following the earnings call, Nvidia shares jumped nearly 5% in after-hours trading.
By June 3, Nvidia’s stock had increased nearly 24% over the past month.
This week also saw overall investor enthusiasm for chip stocks.
The VanEck Semiconductor ETF rose 2%, while companies like Micron Technology saw gains of up to 4%.
Conclusion
Nvidia’s strong earnings and leadership in AI chips have helped it surpass Microsoft in market value, despite challenges posed by export controls targeting its Chinese business.
CEO Jensen Huang’s outspoken criticism highlights the strategic importance of global markets in the tech race.
Investor optimism remains high, fueling gains across the semiconductor industry.
Nvidia’s continued innovation and market presence suggest it will remain a major player in the evolving technology landscape.
