AI chipmaker Nvidia Corp once again became the world's most valuable company on Tuesday, June 3 — its first time reclaiming the top spot since January 24.
Nvidia share price ended Tuesday with a market valuation of $3.45 trillion, edging past Microsoft’s $3.44 trillion.
Despite challenges like export restrictions and tariff issues, Nvidia has continued its strong growth momentum. The stock has gained a significant 24% over the past month. Nvidia's rebound and upward momentum over the past two months have boosted its market capitalisation by $1 trillion.
Nvidia quarterly results 2025
In its latest quarterly results, the company posted a 69% increase in revenue, reaching $44.06 billion, along with earnings per share (EPS) of $0.96 — both surpassing analysts’ expectations, driven by high demand for its AI chips used by firms such as OpenAI.
Its earnings report helped ease major investor worries—specifically around whether U.S. curbs on advanced chip sales to China would hinder Nvidia’s fast-paced revenue growth, impact the broader outlook for AI-related spending, or limit the company’s capacity to scale production of its latest Blackwell chips.
Even after its sharp rise, Nvidia is trading at about 29 times its projected earnings for the next year — still below its 10-year average of 34 times. In comparison, the Nasdaq 100 is valued at 26 times earnings, despite analysts forecasting significantly lower revenue growth than Nvidia’s.
Nvidia’s PEG ratio, which compares valuation to growth, stands below 0.9 — the lowest among the “Magnificent Seven” tech giants, which include Apple, Amazon, Alphabet, Tesla, and Meta.
While China made up 13% of Nvidia’s revenue last quarter, ongoing U.S.–China tariff tensions continue to pose a threat. That said, Nvidia has mitigated some of that risk by securing purchasing agreements with Middle Eastern nations during U.S. President Donald Trump’s recent visit.
(With inputs from agencies)
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