Chipmaker Surpasses Microsoft with Record-Valuation of $3.77 Trillion Driven by the New “Golden Wave” of Generative AI
NVIDIA has once again claimed the top spot in the global market. On June 25, 2025, the California-based company was crowned as the most valuable company in the world, boasting a market capitalization of $3.77 trillion, after a surge in its stock, which reached a historic high of $154.31 per share, increasing by 4.33% in just one day.
With this, NVIDIA surpassed giants such as Microsoft ($3.65 trillion) and Apple ($3 trillion), marking a milestone that solidifies the company’s leadership in the chip sector for artificial intelligence, data centers, and supercomputing.
An Unstoppable Wave of Demand in Artificial Intelligence
The meteoric rise follows an optimistic note from investment bank Loop Capital, which raised its price target for NVIDIA shares from $175 to $250, maintaining its “buy” recommendation. Analyst Ananda Baruah stated:
“Our analysis suggests we are entering the next ‘golden wave’ of generative AI adoption (GenAI), and NVIDIA is at the forefront of a much stronger demand phase than anticipated.”
NVIDIA, a leader in graphics processing units (GPUs), has positioned itself as the world’s leading supplier of hardware for language models, AI training, and next-generation data centers, powering everything from GPT models to enterprise AI platforms.
A Valuation Backed by Strong Earnings
Despite its spectacular stock performance, NVIDIA’s valuation remains below its historical average. It currently trades at about 30 times expected earnings for the next 12 months, compared to its average of 40 times over the past five years, according to data from LSEG (London Stock Exchange Group).
This discrepancy arises because estimated earnings have grown even faster than the stock price, reflecting a business that not only promises but is already delivering exceptional results in revenue, margins, and global growth.
The Battle for Tech Supremacy in 2025
NVIDIA’s new leadership marks a turning point in the historical trio of tech giants. Apple, whose focus on AI has been deemed lukewarm by analysts, lags behind in the race for market dominance.
On the other hand, Microsoft continues to expand in artificial intelligence through its partnership with OpenAI and the rollout of Copilot in its enterprise products. However, NVIDIA’s advantage lies in the fact that all companies in the AI ecosystem—including Microsoft, Google, Meta, and Amazon—rely on its hardware.
A Comeback After Setbacks
It’s important to remember that in April 2025, NVIDIA faced a historic plunge in stock price following the announcement of the Chinese model DeepSeek-V2, losing over $600 billion in a single day. This was exacerbated by trade tensions stemming from new tariffs proposed by former President Donald Trump.
Since then, however, the stock has rebounded by over 60%, driven by strategic agreements, the expansion of its platforms for sovereign AI, and sustained growth in the demand for accelerated computing across all industries, from automotive to biomedicine.
An Appear Unstoppable Trend
All signs point to NVIDIA’s dominance in the AI hardware space consolidating in the coming months, with new architectures like Blackwell, partnerships with countries for proprietary AI platforms, and unprecedented global demand.
When the future relies on chips capable of training, inferring, and responding in real-time, few companies are as well-positioned as NVIDIA. The stock throne may shift over time, but artificial intelligence—and those who power it—are here to stay.