NVIDIA regains top spot as most valuable company, sees surging stock and demand for AI chips.

From Nasdaq: 2025-06-04 10:00:00

NVIDIA reclaimed the title of the world’s most valuable company with a market capitalization of $3.45 trillion, surpassing Microsoft. The milestone reflects investor optimism in AI infrastructure, driven by strong demand for NVIDIA’s AI hardware. The stock has surged 50% since early April, fueled by earnings, AI chip demand, and global expansion plans.

Despite falling short of estimates, NVIDIA reported record revenues led by a booming data center business and high demand for AI chips. Revenues from Data Centers surged 73% to $39.1 billion. The company’s focus on AI chip demand from cloud providers and supercomputing is driving growth, with strategic partnerships in place.

NVIDIA is accelerating global expansions with plans for AI factories in the US and Saudi Arabia, and collaborations with major cloud providers like Oracle, Google, and Microsoft. The company is also considering developing a new AI chip for the Chinese market in response to export controls. Analysts are optimistic about NVIDIA’s growth, citing strong demand for AI chips and strategic partnerships.

The stock is trading at a P/E ratio of 32.40, lower than the industry average, and a PEG ratio of 1.15, indicating good value. ETFs with significant exposure to NVIDIA include SHOC, SMH, SMHX, SOXY, and SEMI. Risk-aggressive investors can consider single-stock ETFs with 200% exposure to NVIDIA for potential gains.

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