On June 18, 2025, Nvidia achieved a historic milestone, overtaking Microsoft to become the most valuable publicly traded company in the world. The chipmaker reached a market capitalization of approximately $3.34 trillion, driven by unprecedented demand for its artificial intelligence (AI) chips and data center solutions. The surge in investor confidence not only pushed Nvidia past Microsoft but also underscored the growing centrality of AI technologies in the global economy.
As of July 19, Nvidia’s stock was trading at $172.41 per share, while Microsoft was priced at $510.05. Microsoft maintains a market capitalization around $2.79 trillion, according to the latest available data. In contrast, Nvidia’s market value has surged into the $3.7–4 trillion range, making it the first public company to cross this threshold in 2025. The company’s meteoric rise is a continuation of its climb that began with a $1 trillion valuation in 2023, reaching $3 trillion in mid-2024, and now pushing even higher within just 12 months.
Nvidia’s ascent is largely attributed to the dominant role its graphics processing units (GPUs) play in powering machine learning, large language models, and generative AI platforms. Businesses worldwide are investing heavily in AI infrastructure, and Nvidia’s products have become essential to that transformation. The company’s hardware is not only used by research institutions but also embedded in cloud service offerings by major tech firms.
CEO Jensen Huang has emerged as a pivotal figure in the tech industry. Under his leadership, Nvidia has evolved from a niche gaming chip provider to a cornerstone of the AI era. His keynote speeches and product unveilings are closely watched events that influence global tech markets. Huang has positioned Nvidia as the engine room of the AI revolution, a role that has significantly elevated both the company’s profile and stock valuation.
Analysts from investment firms like Wedbush have forecast that Nvidia could reach a $5 trillion market cap within the next 18 months if current trends continue. The company’s robust earnings, high-margin product lines, and dominance in critical AI segments give it a strategic advantage over competitors.
Meanwhile, Microsoft remains a powerful player in the AI space through its investments in OpenAI and its Azure cloud services. Despite being dethroned by Nvidia in terms of market capitalization, Microsoft is still valued at around $3.7 trillion. Its strong performance in enterprise software, cloud computing, and productivity tools has helped maintain investor confidence. However, the company has faced headwinds, including significant layoffs and slowdowns in certain consumer product lines, which have slightly dampened its growth trajectory.
The reshuffling of the tech hierarchy marks a broader shift in market sentiment. Investors are increasingly betting on companies that provide the infrastructure for AI development rather than those offering end-user applications alone. Nvidia’s rapid climb has also lifted the entire tech sector, helping the Nasdaq and other indices hit new highs.
This milestone also reflects the broader realignment within Big Tech, where traditional leaders like Apple and Microsoft face stiff competition from rising semiconductor and AI-focused companies. Nvidia’s performance has redefined what market leadership looks like in an era where artificial intelligence is reshaping global productivity and innovation.
With Nvidia now firmly atop the market cap rankings, the spotlight intensifies on how long it can sustain this lead. Microsoft, Apple, and others are likely to ramp up efforts in AI and adjacent technologies to remain competitive. The next phase of tech industry competition could well be decided by breakthroughs in AI hardware and the infrastructure that supports it.
Nvidia’s historic achievement on June 18 wasn’t just a win for the company—it was a clear signal that the center of gravity in the technology sector has shifted decisively toward those building the tools of the AI future.
