NVIDIA has the largest market capitalization at $4.25 trillion, ahead of Microsoft at $3.77 trillion and Apple at $4.55 trillion. NVIDIA's shares climbed 114% from the 52‑week low to the high. NVIDIA supplies the GPUs that power large AI data centers, creating recurring hardware demand from companies including Microsoft and Apple. Major U.S. tech companies committed over $300 billion to AI data center investments this year, with a substantial portion expected to go to NVIDIA. Recent quarterly revenue rose 56% to $46.7 billion and net income rose 59% to $26.4 billion. NVIDIA holds an estimated market share above 90% in its chip sector.
NVIDIA holds a unique position in the tech universe. It is the arms merchant to the AI sector. Every company with massive AI data centers must pay NVIDIA for the chip engines that power them. If a company like Apple has an AI stumble, it has to pay NVIDIA for the hardware to catch up. And AI success stories like Microsoft's have to pay NVIDIA to maintain their position.
NVIDIA ( NASDAQ: NVDA) has the largest market cap in the world, at $4.25 trillion. Microsoft ( NASDAQ: MSFT) is second, with a market capitalization of $3.77 trillion. That is a difference of $480 billion. That difference is equivalent to the market capitalization of ExxonMobil ( NYSE: XOM). Apple ( NASDAQ: AAPL) held the top market cap position for five years. Due to the lack of AI on the latest iPhone, it has fallen to third place, valued at $4.55 trillion.
NVIDIA's earnings also drive its valuation. In the recently reported quarter, revenue rose 56% to $46.7 billion. Net income rose 59% to $26.4 billion. At its current revenue run rate, it will be larger than GM based on annual top line. Another primary reason for NVIDIA's success is its market share. By most estimates, it holds over 90% of chip sales in its sector. While that lead may shrink, based on its user base, it will not decrease significantly.
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