nvidia overtaces microsoft as the worlds most valuable company

The company’s stock rose 3% on Tuesday, surpassing Microsoft’s $3.44 trillion valuation. This marks Nvidia’s return to the top for the first time since January.

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The surge follows a strong first-quarter earnings report, with revenue jumping 69% year-over-year—from $26.04 billion to $44.06 billion. Notably, data center revenue increased 73% to $39.1 billion, while the gaming division grew 42% to $3.8 billion.

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CEO Jensen Huang emphasized the growing global demand for Nvidia's AI infrastructure, describing AI as "essential infrastructure" akin to electricity and the internet. Nvidia’s chips are used by industry leaders like OpenAI, Meta, Google, Amazon, and Oracle to power AI tools such as ChatGPT and Gemini.

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Once a gaming chip manufacturer, Nvidia has transformed into a dominant force in AI, now controlling between 70% and 95% of the AI chip market. The company also plans to expand its manufacturing footprint within the U.S., signaling its long-term commitment to domestic production.

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Nvidia’s stock has climbed over 1,400% in the past five years, and more than 20% in the last year alone, reinforcing its position at the center of the AI revolution.

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