Nvidia has overtaken Microsoft to become the world’s most valuable company as of the end of June, following a sharp rally in its shares driven by the escalating global demand for its data centre chips.
Per Reuters, company’s market capitalisation climbed to $3.86 trillion, putting it ahead of Microsoft’s $3.69 trillion valuation and making it the new front-runner in the space.
Nvidia’s surge comes on the back of its fiscal 2025 results, which showed an astonishing 114% year-on-year revenue jump to $130.5 billion. Its net income grew 145% to $72.9 billion.
Most of that growth is concentrated in its data centre division, which now contributes over 80% of its total revenue, driven largely by hyperscalers like Microsoft, Amazon, and Meta who are aggressively expanding AI workloads.
Microsoft may not be far behind, with its valuation close on Nvidia’s heels. It is still doing great thanks to its investments in OpenAI, enterprise Copilot tools, and its AI-powered Azure cloud services.
But for now, Nvidia sits at the top, powered by massive infrastructure deals and real-world deployment of its H100 and upcoming Blackwell GPUs, which are supporting the most complex AI systems across the globe.
Again, Meta’s market cap rose 14% to $1.86 trillion, Broadcom followed with a 13.9% increase to $1.3 trillion and Amazon also gained 7%, climbing to $2.33 trillion. All three benefited from strong investor confidence in their AI strategies and cloud infrastructure plays.
Meanwhile, Tesla was the outlier, its valuation slipped by 8.3% to $1.02 trillion. The drop came after a high-profile clash between CEO Elon Musk and U.S. President Donald Trump.
Musk’s objection to Trump’s spending bill and the President’s response, threats to cut federal subsidies for Tesla and SpaceX, resulted in a 14% one-day drop in Tesla shares, wiping out $150 billion in value. The episode triggered investor jitters and regulatory speculation that has yet to settle.
Apple, though still among the top three with a $3.1 trillion market cap, has seen its momentum cool. Its December 2024 peak of $3.92 trillion is still unmatched. Slowing iPhone sales and delayed integration of advanced AI technologies have held back its valuation while rivals capitalise on faster innovation cycles.
Meanwhile, analysts are preparing for a new benchmark. “We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club … as this tech bull market is still early being led by the AI Revolution,” said Daniel Ives of Wedbush Securities.
