Nvidia Becomes World’s Most Valuable Company as Shares Hit Record High

26 June 2025: Markets | Global Stocks: In a historic shift in the global markets, Nvidia Corporation has officially become the world’s most valuable publicly listed company, surpassing tech giant Microsoft. A significant rally in its stock price pushed Nvidia to this historic milestone on Wednesday, June 25, 2025.

Nvidia’s shares surged to a new record high, pushing its market capitalisation to an estimated $3.77 trillion. This remarkable valuation now places it ahead of Microsoft, which held a market capitalisation of approximately $3.66 trillion. This ascent firmly establishes Nvidia as the undisputed leader in the artificial intelligence (AI) chip segment, a market experiencing explosive growth.

Nvidia’s journey to the top has been swift and dramatic. The company’s market cap has seen a significant increase of approximately 23.09% in the last 30 days leading up to June 23, 2025, and a staggering 169.30% in 2024 alone. Over the past five years, Nvidia’s market capitalisation has grown at a compound annual growth rate (CAGR) of 59.04%, showcasing its incredible growth trajectory.

CEO Jensen Huang Reaffirms AI-Driven Growth Outlook

Speaking at the company’s annual shareholder meeting, Nvidia CEO Jensen Huang reiterated the exceptionally robust demand for the company’s groundbreaking products. He emphasised that the entire computer industry is currently in the nascent stages of a profound AI infrastructure transformation. This fundamental shift, he noted, positions Nvidia for sustained long-term growth as AI becomes increasingly integrated across various sectors.

Huang has previously suggested that traditional data centres might evolve into “AI factories” powered by Nvidia’s technology. He has also identified robotics, including self-driving cars, as a potentially substantial growth area for Nvidia’s AI chips.

Valuation Still Appealing Despite Sharp Rally

Even after its stock performance, Nvidia’s valuation metrics are being observed. The stock is currently trading at approximately 31.5 times its expected 12-month earnings. This figure is below its 10-year average.

Its PEG ratio (price/earnings to growth) is around 0.9, which is among the lower figures when compared to other prominent tech companies often referred to as the “Magnificent Seven.” A PEG ratio below 1 can sometimes indicate that a company’s stock is reasonably valued in relation to its expected earnings growth.

Outlook Remains Bullish Amid Strong Fundamentals

As Wall Street remains bullish on Nvidia’s growth trajectory, the stock’s valuation remains competitive compared to the broader tech landscape. With AI adoption accelerating globally, Nvidia’s dominant position in the semiconductor and GPU market places it firmly at the forefront of the next wave of technological evolution.

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