Nvidia Corporation (NVDA) Stock: Chip Giant Reclaims Crown as World's Most Valuable Company

TLDR

Table of Contents

Nvidia reclaimed the world’s most valuable company title with $3.45 trillion market cap, overtaking Microsoft’s $3.44 trillion
Stock has surged 48% since April correction bottom, outperforming Nasdaq’s 27% rebound over same period
AI inference token generation jumped 10-fold in one year as practical AI applications multiply
Company is building AI factories globally, partnering with Saudi Arabia for hundreds of thousands of advanced GPUs
Wall Street maintains Strong Buy rating with $173.19 average price target, implying 22.6% upside

Nvidia has once again become the world’s most valuable publicly traded company. The AI chip maker’s market capitalization hit $3.45 trillion on June 3, edging past Microsoft’s $3.44 trillion valuation.

Nvidia tops Microsoft, regains most valuable company title for first time since January https://t.co/ONLU1fogos
— CNBC (@CNBC) June 3, 2025

The stock gained 2.8% in Monday’s trading session. This pushed Nvidia’s market value up by roughly $10 billion in a single day.

Nvidia shares are up nearly 1% in pre-market trading as of Tuesday morning. The company has now reclaimed a title it previously held in January.

This marks the latest chapter in an ongoing battle for market supremacy. Nvidia, Microsoft, and Apple continue to trade positions as the world’s three most valuable companies.

The rivalry centers around dominance in artificial intelligence technology. Each company brings different strengths to the rapidly expanding AI sector.

Nvidia’s stock has shown remarkable resilience this year. Shares bottomed out during an April market correction on April 5.

Since that low point, the stock has rocketed 48% higher. This recovery significantly outpaced the broader Nasdaq Composite index.

The Nasdaq has gained just 27% from its early April trough. Nvidia’s outperformance highlights investor confidence in the company’s AI prospects.

AI Inference Drives Next Growth Phase

Nvidia CEO Jensen Huang outlined the company’s next major growth driver during the recent earnings call. AI inference token generation has surged tenfold in just one year.

Inference refers to the practical application of large language models in real-world scenarios. This includes chatbots, AI-powered search engines, and custom enterprise models.

The tokens Huang mentioned are units of data that models process and generate. More complex AI interactions consume more tokens, requiring additional GPU processing power.

Major AI platforms like OpenAI’s ChatGPT and Anthropic’s Claude rely heavily on this inference computing. Private companies are also building custom models for specific business needs.

Nvidia dominates both AI training and inference markets. The company’s advanced graphics processing units remain essential for both functions.

Building the AI Factory Infrastructure

Nvidia is spearheading development of what it calls AI factories. These facilities represent the next evolution of traditional data centers.

AI factories handle the complete AI lifecycle from data input to final output. They manage training, calibration, and the massive volume of inference requests.

The company provides both hardware and software for these operations. Nvidia’s software optimizes GPU performance to reduce per-token costs for customers.

One optimization example shows cost reductions of up to 20-fold versus older GPU generations. This helps customers achieve better returns on their AI investments.

Saudi Arabia represents Nvidia’s largest international AI factory partnership. The country’s state-owned AI company Humain will utilize hundreds of thousands of Nvidia’s most advanced GPUs.

This partnership will unfold over several years as new chip generations become available. It demonstrates the global scale of AI infrastructure demand.

Trade tensions with China continue to create headwinds for Nvidia. The Trump administration has implemented stricter export controls on advanced chips to China.

These restrictions limit Nvidia’s access to the world’s second-largest chip market. However, the company’s latest quarterly results showed strong resilience.

Sales surged 69.2% year-over-year in the most recent quarter. Earnings per share beat analyst estimates by a wide margin.

The stock has gained over 24% in the past month alone despite ongoing trade uncertainties. Investors appear focused on long-term AI growth potential rather than short-term geopolitical risks.

Wall Street analysts remain bullish on Nvidia’s prospects. The stock carries a Strong Buy consensus rating based on 36 Buy ratings, four Holds, and one Sell.

The average analyst price target stands at $173.19 per share. This implies 22.6% upside potential from current trading levels.

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