Nvidia Becomes the World’s Most Valuable Company
Syllabus: Science and Technology, Indian Economy (UPSC GS Paper III)
Source: TOI
Context:
In June 2025, Nvidia Corporation, a leading global technology company, became the most valuable company in the world, surpassing technology giants such as Apple and Microsoft, with a market capitalization of $3.92 trillion.
About Nvidia:
- Headquarters: California, USA
- CEO: Jensen Huang
- Core Business: Design and manufacture of high-performance graphics processing units (GPUs) and AI hardware
- Key Products: AI chips, gaming GPUs, data center processors
What Led to Nvidia’s Rise?
- AI Boom: The exponential growth of generative artificial intelligence (AI) applications significantly increased the global demand for Nvidia’s AI chips.
- Market Confidence: Investors showed strong confidence in AI’s long-term potential, contributing to Nvidia’s rapid rise in stock value.
- Global Dependence: Major tech firms rely on Nvidia’s GPUs for AI training and deployment, giving it a strategic advantage in the global semiconductor ecosystem.
Market Capitalization as of June 2025:
| Company | Market Value (USD Trillion) |
|---|---|
| Nvidia | 3.92 |
| Microsoft | 3.70 |
| Apple | 3.19 |
Nvidia briefly overtook Apple’s previous record set in December 2024.
Economic Significance:
- Investor Exposure: The surge in Nvidia’s stock has led to greater AI-linked exposure in popular index funds such as the S&P 500.
- Global Comparison:
- Nvidia’s market value now exceeds the entire stock markets of Canada and Mexico.
- It is also greater than the combined market capitalization of all UK-listed companies.
Implications for India and the World:
- Semiconductor Strategy: Nvidia’s rise reinforces the importance of AI and semiconductor development, aligning with India’s own efforts under the Semicon India Programme.
- Geopolitical Relevance: Control over semiconductor and AI hardware has become a critical factor in global tech dominance and national security.
