Nvidia has been at the center of investor enthusiasm for AI, with its high-end processors powering much of the technology’s recent advancement
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Nvidia’s stock surged to a record high Wednesday (June 25), propelling the chipmaker past Microsoft to become the world’s most valuable company as investors continued to bet on strong demand for artificial intelligence technology.
Shares of the Santa Clara, California-based company rose more than 4 per cent to close at $154.10, giving it a market capitalisation of $3.76 trillion. That pushed it ahead of Microsoft, which ended the day with a valuation of $3.65 trillion after a modest 0.2 per cent gain in its stock. Apple followed with a valuation of $3 trillion after its shares rose 0.4 per cent.
The rally followed a bullish note from Loop Capital, which raised its price target on Nvidia from $175 to $250 and reiterated a “buy” rating. Analyst Ananda Baruah said Nvidia was poised to benefit from a new “Golden Wave” of generative AI adoption.
“Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand,” Baruah wrote in a client note.
Nvidia has been at the center of investor enthusiasm for AI, with its high-end processors powering much of the technology’s recent advancement. The company has now rebounded more than 60 per cent from its April 4 low, when markets fell amid global tariff announcements by President Donald Trump. The broader US market has since recovered on hopes that the White House may soften its stance through new trade deals.
Despite the rally, Nvidia’s valuation remains relatively restrained compared to its past. The stock is trading at about 30 times analysts’ projected earnings for the next 12 months, below its five-year average of 40, according to data from LSEG.
Nvidia, Microsoft and Apple have swapped positions as the most valuable publicly traded company several times over the past year, with Microsoft most recently holding the lead.
The S&P 500 technology sector index gained 0.9 per cent on Wednesday to reach a fresh all-time high. The index is now up nearly 6 per cent in 2025.
With inputs from Reuters
