Nvidia surges past Microsoft to become the world's most valuable company

In the United States, Nvidia has experienced a remarkable increase in its stock value, opening almost six percent higher as markets began trading on Thursday, May 29, 2025. This surge followed a stellar quarterly report from the company, resulting in an increase of approximately $185 billion in its value overnight. Nvidia's total market capitalization now stands at around $3.48 trillion, surpassing Microsoft, which had a market cap of approximately $3.44 trillion after closing at $3.4 trillion on Wednesday but showing a slight gain. This fluctuation marks a significant change in the competition among the world's most valuable public companies, with Nvidia reclaiming its position at the top for the first time since mid-2024. Figures indicate that Nvidia's shares had been trading at around $150 by the end of 2024, influenced by a rise in American equities following Donald Trump's inauguration as president. However, these shares dropped below $95 in April 2025 after the announcement of Liberation Day tariffs. The recent trading adjustments have brought the share prices back up to just above $140, demonstrating a steady increase of more than 20 percent over the preceding year while being approximately flat so far in 2025. Investors reacted positively to Nvidia's first quarter earnings report, which showcased total revenue of $44.1 billion, exceeding analysts' estimates. Yet, the earnings per share fell short of expectations due to an $8 billion writedown related to H20 chips. These chips were meant for sale to China but faced restrictions imposed by the Trump administration the previous month. CEO Jensen Huang highlighted AI's growing recognition as essential infrastructure, likening its significance to that of electricity and the internet, and noted Nvidia's influential role in this transformation. Huang criticized President Trump's tariff policies, predicting they would cost Nvidia approximately $10 billion in potential earnings as such controls risk alienating global AI talent. Huang asserted the questionable basis of U.S. policy regarding China's capabilities in producing AI chips and proposed that export controls ought to fortify U.S. platforms rather than inadvertently facilitate the expansion of international rivals. Despite the challenges posed by tariffs, he acknowledged Trump's ambitious vision for enhancing advanced manufacturing in the U.S., which includes job creation and improved national security, setting the stage for Nvidia's positioning in the evolving tech landscape.