Date: 05-jun-2025 | By: Nuztrend Team
In a groundbreaking development that reflects the shifting dynamics of the technology sector, Nvidia Corporation has officially surpassed Microsoft in market capitalization, emerging as the most valuable publicly traded tech company. The market milestone underscores Nvidia’s meteoric rise, powered by surging global demand for artificial intelligence (AI) hardware and software infrastructure.
As of this week, Nvidia’s valuation climbed beyond $3.1 trillion, edging past Microsoft’s $3.09 trillion and firmly placing it at the top of the Wall Street leaderboard.
The driving force behind Nvidia’s historic growth is its unmatched dominance in graphics processing units (GPUs) and AI accelerators—core components of large-scale AI training systems and generative AI models. The company’s flagship chips, such as the H100 and upcoming Blackwell series, are being rapidly adopted by data centers, cloud providers, and research institutions worldwide.
While Microsoft remains a formidable force in cloud computing, productivity software, and enterprise AI through its partnership with OpenAI, the valuation gap reflects investors’ pivot toward hardware enablers of AI rather than just software. Microsoft has also seen strong performance, but Nvidia’s vertically integrated AI stack—from chips to frameworks—has given it the edge in market momentum.
According to Investor’s Business Daily, Nvidia stock has surged over 210% in the last 12 months, compared to Microsoft’s more modest 35% rise.
Market analysts are largely bullish on Nvidia’s trajectory, with many expecting continued growth as AI adoption enters mainstream enterprise environments, smart devices, robotics, and autonomous systems. However, some caution that heavy dependence on AI could expose the company to cyclical risks if demand slows or competition intensifies.
Despite these concerns, Nvidia’s current momentum puts it on a path to potentially become the first $4 trillion tech company—if its AI ecosystem continues to expand at the current rate.
Nvidia’s ascension over Microsoft isn’t just a stock market story—it symbolizes a fundamental shift in technological value creation. As artificial intelligence moves from hype to infrastructure, the companies that build and power these capabilities are taking center stage.
With Nvidia now leading the pack, the next phase of innovation may very well be written in silicon—and trained on billions of AI parameters.
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