Nvidia Hits Record High, Becomes World’s Most Valuable Company

preCharge News BUSINESS — Nvidia shares rose more than 4% on Wednesday, closing at an all-time high for the first time since January, as investors brushed off concerns about U.S. export restrictions to China.

The stock ended the day at $154.31, surpassing its previous closing record of $149.43 set on Jan. 6.

Nvidia Surpasses Microsoft and Apple in Market Value

With its latest rally, Nvidia’s market capitalization climbed to $3.77 trillion, making it the largest publicly traded company in the world, edging out Microsoft. Apple now sits in third place with a market cap of approximately $3 trillion.

AI Demand Powers Nvidia’s Momentum

Market Leadership Remains Unshaken

Despite growing geopolitical tensions and strict export rules, Nvidia has maintained a dominant position in the graphics processing unit (GPU) market, which powers AI applications and large language models.

This resilience has surprised some investors, particularly after the company acknowledged its effective exit from China, the second-largest economy in the world.

$8 Billion Blow From U.S. Sanctions

In April, the Trump administration enforced new rules banning the sale of Nvidia’s H20 AI processors, which had been developed to meet earlier regulatory thresholds.

Nvidia said the change will cost the company $8 billion in lost sales, and forced it to write off $4.5 billion in unsold inventory.

“The $50 billion China market is effectively closed to U.S. industry,” Nvidia CEO Jensen Huang said last month.

An additional U.S. export restriction on AI chips is expected soon, according to administration officials.

Record Earnings Fuel Investor Optimism

Data Center Business Drives Growth

In its May earnings report, Nvidia posted a 69% increase in year-over-year revenue, driven by a 73% surge in its data center segment, the core of its AI infrastructure.

For the full fiscal year, analysts project 53% revenue growth, bringing total sales to nearly $200 billion, according to estimates from LSEG.

Robotics Named Next Big Growth Frontier

CEO Highlights Post-AI Vision at Shareholder Meeting

Speaking at Nvidia’s annual shareholder meeting on Wednesday, Huang said that aside from AI, robotics represents the company’s next major growth opportunity.