Nvidia Passes Microsoft As World's Most Valuable Company
By Tom Kagy | 25 Jun, 2025

A 4.3% surge in Nvidia's stock price to a record $149.53 on Wednesday has given it a valuation of $3.75 trillion, adding $5 billion to Jensen Huang's wealth.

On Wednesday as the stock market experienced a bout of euphoria on easing Mideast tensions, Nvidia shares surged 4.3% to $154.31 closing price, a new record.  Earlier in the day its shares had gone as high as $154.43.

The increase raised Nvidia's valuation to $3.75 trillion, placing it ahead of Microsoft's $3.6 trillion and making it the world's most valuable company.  During the past year Nvidia had soared to the ranks of the world's three most valuable companies along with Microsoft and Apple, with Amazon and Google trailing by less than $1 trillion.

Founder and CEO Jensen Huang saw the value of his 3% stake, or about 859 million shares of Nvidia, increase by over $5 billion to about $130 billion.   While his wealth is easily surpassed by those of Elon Musk, Meta's Mark Zuckerberg and Amazon's Jeff Bezos, it is perhaps the fastest growing among those of his billionaire peers.

Analysts have placed Nvidia on a pedestal the past two years as the spearhead of the AI revolution because its GPU chipsets are the brains that power the training of AI models using so-called Large-Language Model (LLM).  It is also the primary processor for running AI models due to its efficiency in channeling massive amounts of data at higher speeds than competitors' chipsets and because Nvidia has essentially written the manual on how to use GPUs to build and run AI models.

What makes the growth of Nvidia's stock valuation all the more impressive is that for all its opportunity to continue supplying GPUs for the burgeoning AI industry, it also faces significant headwinds.  Among them are Trump's severe curbs on exports of Nvidia GPUs to China and many other nations in an effort to slow down the pace of China's AI development.

The other major headwind is its increasingly head-on competition with the world's tech giants like Microsoft, Google, Apple and Amazon, who also happen to be its biggest GPU customers, for AI cloud services.  Those services are seen as a main driver of growth for the AI industry.  As a result the other tech giants have all been investing heavily in designing and manufacturing their own AI processors.

And farther down the road is the prospect of quantum processors taking over the most intensive processing tasks from Nvidia's GPUs.  Once perfected, quantum chips can process data at about two dozen orders of magnitude faster than conventional processors while using a tiny fraction of the energy.

Yet many analysts expect Nvidia to attain upwards of $5 or $6 trillion — or higher.