Nvidia has once again emerged as the world’s most valuable publicly traded company, overtaking Microsoft amid a continued surge in demand for artificial intelligence technologies. This major milestone underscores Nvidia’s critical role in powering next-generation AI infrastructure across industries.

On Tuesday, Nvidia’s shares rose by nearly 3% to reach $141.40, lifting its market capitalisation to an impressive $3.45 trillion. This pushed it slightly ahead of Microsoft’s $3.44 trillion valuation. Nvidia had briefly taken the lead earlier in January, continuing a close race with Microsoft and Apple for tech supremacy.

The company’s meteoric rise is largely attributed to its leadership in AI-focused semiconductors. Nvidia’s GPU-based AI accelerators are now the backbone of large-scale AI systems used by major players like OpenAI, Microsoft, Meta, Google, Amazon, Oracle, and xAI. These systems rely on Nvidia’s hardware for advanced machine learning and generative AI tasks.

The broader semiconductor sector also benefited from the rally, with Broadcom climbing 3%, Micron gaining 4%, and the VanEck Semiconductor ETF increasing by 2%, reflecting strong investor faith in chipmakers leading the AI boom.

Nvidia recently reported a record-breaking first quarter for 2025, with revenue hitting $44.1 billion—a 69% jump year-over-year. Its data center business alone contributed $39.1 billion, up 73%, reinforcing its dominance in AI computing.

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What began in 1993 as a company focused on gaming graphics has now transformed into the central engine of global AI innovation. Nvidia’s GPU architecture, originally crafted for gaming performance, has proven uniquely capable of powering sophisticated AI models at scale.

Nvidia’s extraordinary rise highlights how deeply AI is shaping the future of technology, placing the company firmly at the heart of a new digital era.

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