Nvidia becomes world’s most valuable company after stock surge

Strong earnings and aggressive AI spending by tech giants helped Nvidia climb to the top of global stock rankings.
Nvidia’s stock surged to a record high, overtaking Microsoft as the world’s most valuable company with a market cap of US$3.77 trillion.

Nvidia shares hit an all-time high on 25 June, rising 4.3 percent to US$154.31. The stock has surged 63 percent since April, adding another US$1.5 trillion to its market value.

With a total market capitalisation of about US$3.77 trillion, Nvidia has overtaken Microsoft to become the world’s most valuable listed company.

Strong earnings and growing AI infrastructure spending by major clients — including Microsoft, Meta, Alphabet and Amazon — have reinforced investor confidence.

Nvidia’s CEO, Jensen Huang, told shareholders that demand remains strong and that the computer industry is still in the early stages of a major AI upgrade cycle.

Despite gaining 15 percent in 2025, following a 170 percent rise in 2024 and a 240 percent surge in 2023, Nvidia still appears reasonably valued. It trades at 31.5 times forward earnings, below its 10-year average and close to the Nasdaq 100 multiple, even though its projected growth rate is higher.

Analyst sentiment remains firmly bullish. Nearly 90 percent of analysts tracked by Bloomberg recommend buying the stock, which trades below their average price target.

Yet, Nvidia is less widely held among institutional investors than peers like Microsoft and Apple, indicating further room for buying as AI momentum continues into 2026.

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