How Nvidia Became the World’s Most Valuable Company - Should You Still Buy?

As of June 3, 2025, Nvidia officially became the most valuable public company in the world. Yep, it finally happened. The AI chipmaker has overtaken tech heavyweights like Microsoft and Apple to claim the top spot. At the end of trading that day, Nvidia's market cap landed somewhere between $3.45 and $3.54 trillion, just edging past Microsoft and well ahead of Apple.

What’s wild is that just two years ago, Nvidia’s valuation was around $1 trillion. That kind of growth in such a short time? Pretty rare. We actually took a closer look at whether Nvidia stock was overvalued earlier this year—and, well, here we are.

What’s Fueling Nvidia’s Stock Surge?

AI Chips Are at the Heart of Everything

The short answer: AI. Nvidia’s chips are in crazy demand because they’re powering much of today’s generative AI tools. If you’re training a massive AI model, chances are you’re using Nvidia’s GPUs. Companies like OpenAI, Google, Meta—they’re all in on Nvidia hardware. That demand has completely taken off, and Nvidia has had trouble keeping up with it.

If you want a more data-driven breakdown, check out our deep dive on whether Nvidia stock is worth the AI hype.

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Blowing Past Expectations

The company isn’t just coasting on buzz—it’s delivering massive numbers. In its latest earnings report, Nvidia posted $44 billion in revenue, up 69% from the year before. For a company this size, that kind of growth is almost unheard of. And it’s not just revenue—the profits are booming too, which has made Nvidia a favorite among investors betting big on AI.

Investors Can’t Get Enough

Nvidia’s stock nearly tripled in 2024 and hasn’t stopped climbing in 2025. Just last month, shares jumped another 24%. That momentum was enough to push it over Microsoft on June 3. It’s also been a huge driver for the overall stock market, lifting up indexes like the S&P 500 and Nasdaq. There’s a sense among traders right now that it’s Nvidia’s world, and the rest of the market is just reacting to it.

We covered some early predictions about where Nvidia stock might be heading in our 2025 forecast, which now looks surprisingly on point.

Has Nvidia Held the Crown Before?

Kind of. It briefly claimed the #1 spot in June 2024, and again in January 2025, but it didn’t hold for long either time. This latest rise feels more grounded—it’s supported by stronger earnings and long-term confidence, not just hype.

What Could Slow Nvidia Down?

There are definitely a few clouds on the horizon. For one, new U.S. rules have restricted Nvidia’s ability to sell its top-tier AI chips to China. That could mean billions in lost revenue. CEO Jensen Huang has been pretty vocal about it, saying these limits could push talent and innovation elsewhere if not handled carefully.

There’s also the usual market stuff—tech stock volatility, global tensions, and worries about whether the AI boom is sustainable. Still, so far, Nvidia’s momentum hasn’t really slowed down.

Why This Shift Matters

For a long time, the most valuable companies in the world were all about consumer products and software—think Apple’s iPhones or Microsoft’s cloud empire. Nvidia’s rise signals a shift. Investors are now betting big on the infrastructure behind AI, not just the flashy apps or services built on top of it.

This is also the first time a semiconductor company has topped the market. That alone shows how critical chip technology has become. Nvidia’s GPUs are now seen as essential to everything from chatbots to autonomous vehicles.

This kind of disruptive growth isn’t unique to Nvidia either—we recently looked at Nu Holdings, which is seeing its own type of momentum in emerging markets.

Could Nvidia’s Valuation Be Too High?

Some analysts think things might be getting a bit overheated. A $3.5 trillion valuation assumes Nvidia will keep up this insane growth pace for a while. If AI spending slows or another company catches up, we could see a pullback. But for now, most investors seem pretty confident that Nvidia is in a league of its own.

Final Thoughts: A New Tech Era?

Nvidia’s rise isn’t just a big moment for one company—it’s a signal that the tech world is changing. The spotlight is on AI now, and Nvidia is right at the center of it. From a graphics chip maker to the most valuable company on Earth, it’s been a remarkable journey.

Whether Nvidia can hang on to this top spot will depend on how well it navigates the fast-moving AI space. But for now, it’s clear: we’re living in an AI-first era, and Nvidia is leading the charge.

And if you’re curious how other growth stories stack up in a volatile market, we also took a close look at Block (SQ) ahead of its Q3 earnings.

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