NVIDIA Notches New Nasdaq Notoriety, Reclaims World's Most Valuable Title
Riding the momentum of the artificial intelligence (AI) boom, Santa Clara-based chipmaker NVIDIA reached a new record high on Wednesday, as its stock surged 4% to close at $154.10. This rally lifted the company’s market valuation to a staggering $3.76 trillion, allowing it to reclaim the title of the world’s most valuable company, surpassing Microsoft’s $3.65 trillion valuation, according to Reuters.
Investment firm Loop Capital raised its price target for NVIDIA from $175 to $250, stating that a “golden wave” of AI advancement is underway, with NVIDIA “at the crest of the surge.”
NVIDIA continues to experience rising demand for its AI-focused chips, and market analysts expect the company’s earnings over the next 12 months to exceed previous forecasts. Despite this growth, the stock's price-to-earnings ratio has declined from a five-year average of 40 to around 30, indicating improving fundamentals even as investor interest grows.
NVIDIA, Microsoft, and Apple (currently valued at $3 trillion) have all vied for the position of the world’s most valuable company over the past year. So far in 2025, NVIDIA’s stock has surged by over 60%, reflecting sustained investor confidence in the company’s leadership in the AI era.
