Nvidia has once again become the worlds most valuable company, overtaking Microsoft in a historic shift powered by the booming demand for artificial intelligence technologies The companys shares rose by 3.4 percent on Tuesday, pushing its total market capitalisation to approximately 3.45 trillion dollars slightly higher than Microsofts 3.44 trillion dollars

Not the first time at the top

This is not the first time that Nvidia has claimed the number one spot Earlier this year on 24 January, the chipmaker briefly held the position but was later surpassed by Microsoft It has now regained its lead, highlighting the investor confidence in its AI-focused growth strategy

Exceptional Q1 earnings performance

Nvidia recently reported its earnings for the first quarter ending April 27 The company posted record revenue of 44.1 billion dollars which marked a 12 percent increase from the previous quarter and a 69 percent surge year on year

A major contributor to this strong performance was the continued growth in AI and data centre chip sales The company earned 4.6 billion dollars from sales of its H20 chip line alone in Q1 of fiscal year 2026 Despite global trade concerns and regulatory pressures, Nvidia has continued to outperform

Expanding AI infrastructure

Nvidia is not only a chipmaker but is also becoming a key player in global AI infrastructure The company has shared plans to create up to half a trillion dollars worth of AI systems over the next four years These systems include AI supercomputers and large-scale data centres

In April this year, it was reported that Nvidia would start manufacturing AI supercomputers in the United States for the first time This includes the production of its advanced Blackwell chips in Arizona and the setup of a massive AI facility in Texas covering over one million square feet

The Texas AI supercomputer plant is being built in collaboration with Foxconn This move reflects Nvidia’s focus on localising manufacturing to avoid supply chain disruptions and manage geopolitical trade risks

Global expansion through Stargate UAE

Nvidia’s ambitions go beyond the United States In May 2025, the company announced Stargate UAE, a mega project aimed at creating the world’s largest AI data centre cluster outside the United States The first phase of this project will be located in Abu Dhabi

Stargate UAE is being developed in partnership with global tech giants such as OpenAI, Oracle, SoftBank Group, and Cisco The project aims to provide governments and companies in other regions with high-quality AI infrastructure bridging the gap between AI innovation and global access

Strong tech and cloud partnerships

Nvidia’s success is also supported by its strategic partnerships across the technology ecosystem In its recent earnings report, the company highlighted collaborations with Google in AI research, including work on robotics and drug discovery

The company also revealed that its Blackwell chip architecture would be integrated into the cloud platforms of major service providers including

• Amazon Web Services AWS

• Google Cloud

• Microsoft Azure

• Oracle Cloud Infrastructure

This integration means that more enterprises will be able to leverage Nvidia’s high-performance AI chips through their existing cloud environments thereby broadening Nvidia’s commercial reach

What makes Nvidia so valuable

Nvidia’s current valuation surge is largely a result of the explosive growth of AI technology adoption around the world From powering chatbots and image generators to autonomous systems and scientific computing, Nvidia’s graphic processing units GPUs and custom AI chips are now core infrastructure for modern AI development

The company’s ability to scale production, innovate rapidly, and form deep partnerships across industries gives it a strategic advantage that is reflected in its current market leadership

Future outlook

With its market capitalisation surpassing 3.45 trillion dollars, Nvidia is now positioned as a key driver of the global AI economy Industry experts expect continued growth, especially as the company rolls out more Blackwell-based products, expands global operations, and deepens ties with both public and private sector AI programmes

The next few quarters will be crucial as investors watch for signs of sustained growth in AI demand and Nvidia’s ability to manage regulatory and geopolitical challenges

In conclusion, Nvidia’s rise to the top once again underscores the transformative power of artificial intelligence and the company’s critical role in shaping the future of technology worldwide

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.