Nvidia Reclaims the Throne: Surpasses Microsoft as World’s Most Valuable Firm

• Nvidia (NVDA) shares rose nearly 1% to $142 in premarket trading on Wednesday, after a 2.80% gain to $141.22 on Tuesday, overtaking Microsoft Corporation (MSFT) to become the world’s most valuable company with a $3.45 trillion market cap.
• Microsoft, with a market value of $3.44 trillion at $462.97 per share, trailed Nvidia, as the two, alongside Apple Inc. (AAPL), remain the only companies to surpass a $3 trillion valuation.
• Despite a January peak of $3.66 trillion, Nvidia’s stock faced pressure from China’s DeepSeek low-cost AI model, but its inclusion in Jefferies’ “Franchise Picks” as the leading AI accelerator supplier underscores sustained investor confidence.

Nvidia Corporation (NVDA) continues to assert its dominance in the artificial intelligence sector, with shares climbing nearly 1% to $142 in premarket trading on Wednesday, building on a 2.80% gain to $141.22 on Tuesday that propelled its market capitalization to $3.45 trillion, surpassing Microsoft Corporation (MSFT) to reclaim the title of the world’s most valuable company. Microsoft, closing at $462.97 per share with a market cap of $3.44 trillion on Tuesday, fell just short of Nvidia’s valuation, underscoring the intense competition among tech giants. Nvidia, Microsoft, and Apple Inc. (AAPL) have been locked in a tight race for the top spot, as the only companies to ever exceed a $3 trillion market valuation, a milestone reflecting their pivotal roles in shaping the global technology landscape.

The resurgence of Nvidia’s stock follows a volatile period earlier in 2025, when its market cap peaked at $3.66 trillion in January before a selloff triggered by concerns over China’s DeepSeek introducing a low-cost AI model, which raised questions about the sustained dominance of U.S.-based AI firms. Despite this, investor confidence in Nvidia remains robust, driven by its unmatched position in supplying AI accelerators critical to data centers powering the development and training of advanced AI models. Jefferies reinforced its bullish stance on Tuesday by adding Nvidia to its “Franchise Picks” list, highlighting the company as the leading supplier in the rapidly expanding AI ecosystem. The firm describes its Franchise Picks as “our highest-conviction, Buy-rated stocks.”

Nvidia’s inclusion stems from its dominant position in AI accelerators, which are essential for powering data centers—the backbone of artificial intelligence development and training.

Despite a larger-than-expected hit from U.S. export restrictions, Jefferies remained impressed with Nvidia’s quarterly revenue projections, which largely aligned with analyst expectations. The company estimates an $8 billion revenue loss this quarter from H20 chip sales, which the Trump administration barred from being sold in China.

However, analysts pointed to a surge in AI investments from Saudi Arabia and the United Arab Emirates as a bright spot. Nvidia recently struck a deal to supply chips to Saudi AI startup Humain, while the U.S. and UAE reached an agreement allowing the Middle Eastern nation to import American-made AI chips.

Nvidia’s ability to reclaim the top valuation spot highlights its central role in the AI boom, which continues to drive investor enthusiasm despite competitive pressures and global market dynamics. The company’s technological advancements and strategic positioning in AI infrastructure have solidified its appeal, even as it navigates challenges from emerging international players. As Nvidia, Microsoft, and Apple vie for supremacy, the focus remains on innovation and market execution in a rapidly evolving tech landscape, with Nvidia’s latest gains signaling its strength in maintaining a competitive edge.

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