Nvidia Passes Microsoft to Be World’s Most Valuable Company
Nvidia has surpassed Microsoft as the world’s most valuable company. However, Microsoft could reclaim the top spot at any time. The post Nvidia Passes Microsoft to Be World’s Most Valuable Company appeared first on 24/7 Wall St..
First place in the race for the world’s most valuable company based on market cap bounces around. The three companies that exchange the spot are Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and, more recently, Nvidia Corp. (NASDAQ: NVDA). The huge artificial intelligence (AI) chip company took the crown from Microsoft, but its advantage is slight, which means Microsoft could easily reclaim it.
24/7 Wall St. Key Points:
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Nvidia Corp. (NASDAQ: NVDA) has surpassed Microsoft Corp. (NASDAQ: MSFT) as the world’s most valuable company.
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However, Microsoft could reclaim the top spot at any time.
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Nvidia is worth $3.444 trillion. Just a tick below that, Microsoft is at $3.441 trillion. Apple has fallen well behind at $3.036 trillion. Apple’s stock is down 19% this year over worries about 25% tariffs on many of its products imported to the United States, attacks by President Trump about where it makes its products, and concerns about its slow move into AI-driven products.
Microsoft’s stock is up 9% this year, and Nvidia’s is 5% higher. However, after its earnings announcement, Nvidia’s stock jumped over 20%.
Nvidia’s quarterly results showed it is still at the heart of the AI revolution. Revenue jumped 69% year over year to $44.1 billion. Per-share earnings grew from $0.60 to $0.76. Its forecast for the current quarter was better than expected at $45 billion, plus or minus 2%.
Microsoft’s earnings success was more muted. Revenue rose 13% to $70.1 billion. Earnings were up 18% to $3.46 per share.
Nvidia’s market cap edge is based on its position as the largest public pure-play company in the world. By contrast, Microsoft still relies on Windows, cloud computing, LinkedIn, and its games business. Microsoft has had friction with its largest AI partner, OpenAI, leading the market to question whether this setback will harm its plans to become a fully AI-driven company. Even if it has a measure of success, it still has to compete with Amazon, Alphabet, and Meta.
Another reason for Nvidia’s success is that it is an AI arms merchant. It sells its chips to companies such as Microsoft, Alphabet, Meta, OpenAI, and hundreds of others with AI aspirations. Nvidia’s primary competition is AMD, which is a distant second. It may also end up competing with emerging AI chip companies in China.
Microsoft and Nvidia are so close to one another in the market cap race that they could trade places in just a day.
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The post Nvidia Passes Microsoft to Be World’s Most Valuable Company appeared first on 24/7 Wall St..
