Nvidia Reclaims Title of World’s Most Valuable Company, Ousting Microsoft

Nvidia (NVDA) stock gained 2.8% yesterday, driving up its market capitalization by $10 billion to become the world’s most valuable publicly listed company. On June 3, Nvidia’s market capitalization rose to $3.45 trillion, overtaking tech giant Microsoft’s (MSFT) $3.44 trillion to reach the world’s highest market capitalization. NVDA stock is up nearly 1% in pre-market trading, at the time of writing.

Nvidia’s stock led the rally in tech shares yesterday, as investors await details of the White House’s trade negotiations with countries, including China. The administration has asked countries to submit their best offers by today (June 4) to facilitate review and finalization before the 90-day extension ends in July.

Can Nvidia Sustain the Number 1 Spot?

On January 24, Nvidia was hailed as the most valuable company in the world, with its stock price closing at $142.61. However, ongoing concerns surrounding the U.S.-China trade conflicts continue to undermine Nvidia’s leading position. This volatility highlights the intense competition among Nvidia, Microsoft, and iPhone maker Apple (AAPL), as they vie for dominance in the rapidly expanding artificial intelligence (AI) sector.

These market fluctuations are common for technology companies and are sustainable only if their business consistently outperforms. Nvidia is caught in the crosshairs of the U.S.-China tariff war, which have escalated significantly. Having said that, Nvidia has built a dominant position for itself in the AI sector, serving as the cornerstone for innovations in GPUs (Graphic Processing Units), silicon chips, and hardware. Major tech companies and startups, such as OpenAI and xAI, depend on Nvidia’s products and are continuously pouring in billions of dollars in AI infrastructure to facilitate their massive AI ambitions.

Meanwhile, the Trump administration keeps implementing stricter rules on the export of Nvidia’s advanced chips to China, curtailing its growth in the second-largest chip market. Nonetheless, the company’s latest quarterly results displayed resilience, with sales surging 69.2% year-over-year, and earnings per share beating consensus estimates by a wide margin. NVDA stock has gained over 24% in the past month alone despite the hurdles.

Is NVDA Stock a Buy Now?

Wall Street remains highly optimistic about Nvidia’s long-term stock trajectory. On TipRanks, NVDA stock has a Strong Buy consensus rating based on 36 Buys, four Holds, and one Sell rating. Also, the average Nvidia price target of $173.19 implies 22.6% upside potential from current levels.

See more NVDA analyst ratings