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Nvidia shares have opened almost six percent higher as stock markets begin trading in the US on Thursday, following yet another stellar quarterly report from the chipmaker.
Following strong overnight trading and another late surge pre-markets, it equates to around a $185bn (£137bn) rise in the value of the company overnight - taking the total market capitalisation to around $3.48 trillion (£2.58tn) to usurp Microsoft as the world’s most valuable public listed business once again.
Microsoft closed at $3.4tn on Wednesday, but gained just under 1 percent, giving it a new market cap of around $3.44tn. Additional trading in the coming hours will confirm whether the AI bellwether firm can hold its top spot for the first time since the middle of 2024. Microsoft in turn took the lead from Apple - which closed with a market cap of just under $3tn on Wednesday - at the start of 2025.
Shares in Nvidia reached around $150 in price by the end of 2024, as American equities surged following Donald Trump's inauguration as president. Still, they sank to below $95 in April after the Liberation Day tariffs were announced.
When Thursday’s market opens, they will be back above $140 once more, more than 20 percent up over the past year, but only just above flat for the year-to-date 2025.
Investors reacted positively overnight to Nvidia’s first quarter earnings, which showed revenue of $44.1 bn, beating analysts’ estimates. However, earnings per share came in under expectations, partly due to an $8 billion writedown on H20 chips, which were intended to be sold to China but were blocked by the Trump administration last month.
During his speech to investors, CEO Jensen Huang said he world was “recognising AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the centre of this profound transformation.”
Mr Huang also criticized President Trump’s approach to tariffs, which is expected to cost Nvidia around $10 billion in lost earnings.
“The US has based its policy on the assumption that China cannot make AI chips. That assumption was always questionable, and now it’s clearly wrong,” he said. “Export controls should strengthen US platforms, not drive half of the world’s AI talent to rivals.”
However, he also added that Mr Trump had “outlined a bold vision to reshore advanced manufacturing, create jobs, and strengthen national security” within the United States.