Nvidia climbs to record high to become world’s largest stock again amid AI optimism

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Nvidia shares rose to an all-time high on Wednesday, with the leader in artificial intelligence (AI) chips extending an advance that has cemented its position as one of the most valuable companies in the world.

The stock rose 4.3 per cent to US$154.31, taking out an all-time high that has stood since January. The record is only the latest milestone for the company, which has risen 63 per cent off an April low, a rally that has added nearly US$1.5 trillion to its market capitalisation.

With the day’s gain, Nvidia stands as the world’s largest stock, with a market cap of about US$3.77 trillion, overtaking Microsoft at US$3.66 trillion.

Recent earnings from Nvidia were a notable catalyst for bulls, as the report showed robust growth and pointed to more strength ahead despite the impact of restrictions on the sales of advanced semiconductors in China.

Nvidia CEO Jensen Huang speaks at the Viva Technology conference in Paris earlier this month. Photo: Reuters

Prints from Microsoft, Meta Platforms, Alphabet and Amazon.com – which together make up more than 40 per cent of Nvidia’s revenue, per supply chain data compiled by Bloomberg – further underlined how the company’s biggest customers continue to spend aggressively building out their AI infrastructure.

“My confidence in Nvidia’s growth is higher than it was a couple of months ago, and it seems the AI arms race will continue through 2025 and probably 2026,” said Michael Smith, co-portfolio manager at Allspring Global Investments.