NVIDIA regains title of world's most valuable company! Stock rises 2.8%, AI leader makes triumphant return

TradingKey - On Tuesday, U.S. East Coast time, NVIDIA (NVIDIA.US) shares rose 2.8% to close at $141.22, giving the company a market capitalization of $3.45 trillion and surpassing Microsoft to reclaim the top spot among the world's largest listed companies. This marks the first time in over four months that the company has reached this position.

[NVIDIA Daily Chart (since April), Source: TradingView]

Over the past month, NVIDIA’s stock has risen nearly 24%, and from its April lows, it has surged more than 45%. Previously, concerns about its growth outlook due to China-U.S. trade policies and export restrictions weighed on investor sentiment. However, last week’s strong financial report effectively eased those concerns. The report showed NVIDIA’s revenue for the first fiscal quarter reached $44.06 billion, up 69% year-over-year and significantly exceeding expectations. Net profit stood at $18.8 billion, representing a 26% increase year-over-year. These results reaffirmed NVIDIA’s dominant position in the AI sector and its ability to generate sustained profitability.

Despite continued share price gains, NVIDIA is currently trading at a price-to-earnings ratio of just 29 times earnings expected over the next 12 months, below its ten-year average of 34 times, and slightly above the Nasdaq 100 Index’s multiple of 26 times.

Microsoft, Amazon, Meta, and Alphabet together account for more than 40% of NVIDIA’s revenue. Continued investments by these tech giants in AI infrastructure provide solid support for NVIDIA’s future growth. It is estimated that capital expenditures by these four companies will rise to $330 billion by 2026.