Nvidia Surpasses Microsoft to Become the World’s Most Valuable Company
This shift follows a nearly 24% surge in Nvidia’s price over the past month, despite ongoing concerns about export controls and tariffs.
Quick overview
- Nvidia has surpassed Microsoft to become the world's most valuable publicly traded company, with a market cap of $3.45 trillion.
- Despite concerns over export controls and trade tensions, Nvidia's stock has surged nearly 24% in the past month, driven by its dominance in AI chip production.
- Morgan Stanley maintains an 'Overweight' rating on Nvidia, calling it a 'unique opportunity' in the semiconductor sector, citing strong gross margins and rising non-China revenue.
- Analysts advise caution due to geopolitical risks, but remain confident in Nvidia's demand and potential for growth.
Nvidia’s immense growth potential is accompanied by marked volatility and geopolitical risks—prompting analysts to advise “caution,” even as its returns continue to attract investors.
Nvidia (NVDA) has overtaken Microsoft (MSFT) in market capitalization, becoming the world’s most valuable publicly traded company. The chipmaker’s stock rose 3% to $141.40, pushing its market cap to $3.45 trillion—just edging past Microsoft’s $3.44 trillion.
This shift follows a nearly 24% surge in Nvidia’s stock price over the past month, despite ongoing concerns about export controls and tariffs. Since June 2024, Nvidia, Microsoft, and Apple have been locked in a tight race for the top spot in global market cap rankings.
Nvidia had previously reached the number one position on January 24, 2025. Its ascent continues to be driven by its dominance in AI chip production, powering technologies developed by companies such as OpenAI, Microsoft, Google, and Meta.
Morgan Stanley on Nvidia: A Unique Opportunity
Nvidia’s market rally has defied persistent uncertainty over export restrictions and trade tensions with China—issues that have already impacted the company’s profit margins and sparked concerns across the semiconductor industry. Nonetheless, Morgan Stanley reaffirmed its bullish stance on Nvidia in early June.
The investment bank maintained its “Overweight” rating and described Nvidia as a “unique opportunity” within the semiconductor space, reaffirming it as the firm’s top pick in the sector.
“The world’s most valuable semiconductor company is making a strong case that its business is set to accelerate from here, even as the market consensus still fears a slowdown,” analysts noted. Nvidia’s latest quarterly results supported that view, with Morgan Stanley citing “strong gross margins, rising non-China revenue, and a rebound in networking” among the positives driving its supply chain expansion.
Despite offering limited forward guidance for the second half of 2024 and into 2026—a caution likely tied to geopolitical sensitivities surrounding the ongoing trade war—Morgan Stanley remains confident in Nvidia’s underlying demand. The bank also noted that current rack shortages, which have led to inventory buildups among original design manufacturers (ODMs), could be resolved in the near future.
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