Nvidia shares hit record $3.77 trillion valuation, surpass Microsoft
Nvidia stock surged 4.3% Wednesday, pushing its market cap to $3.77 trillion. That tops Microsoft’s $3.66 trillion and marks a turnaround for the chip giant after a shaky start to 2024.
CEO Jensen Huang gave a bullish outlook at the annual shareholder meeting. He called AI and robotics a “multitrillion-dollar opportunity” and said the world is entering a “decade-long AI infrastructure build-out.” 
“We are at the beginning of a decade-long AI infrastructure build-out: demand for sovereign AI is growing around the world,” Huang told shareholders.
The rally comes as worries about tech giants cutting AI infrastructure spending eased. Microsoft, Amazon, and others signaled strong commitment to AI investments in earnings reports.
AI memory supplier Micron also boosted confidence with record $9.3 billion revenue and a positive AI demand forecast. Nvidia’s recent earnings beat Wall Street expectations.
The stock had tumbled earlier this year after China’s DeepSeek breakthrough and new US export restrictions that cut Nvidia off from the lucrative Chinese market, potentially worth $50 billion.
Nvidia plans to redesign its Blackwell chips to comply with export controls and keep China access.
Research CEO Daniel Newman commented on the rally:
“Even though cloud providers like Amazon and Microsoft want to build their own vertically integrated AI infrastructure, right now there’s no situation where the best technology stack isn’t Nvidia.”
He added AMD and other rivals don’t threaten Nvidia’s hold on a $400 billion market forecast over the next four years.
Microsoft processed 5x more AI requests than last year, according to Huang.
Nvidia-backed neocloud AI company CoreWeave soared over 300% since its Nasdaq debut in March, reflecting renewed AI growth optimism.
Nvidia sticks to annual AI chip launches. It’s gearing up for the Vera Rubin chip follow-up to the high-demand Blackwell systems. Big sovereignty deals closed with Saudi Arabia and UAE.
Huang recently toured Gulf states and Europe, touting “accelerated computing” to boost global productivity.
TechInsights VP Dan Hutcheson said:
“Nvidia was oversold because of both [tariffs and DeepSeek breakthrough].”
Nvidia’s stock is charging ahead again, betting big on AI’s long game despite market turbulence and geopolitical hurdles.
