May 29, 2025 – Silicon Valley — Nvidia has officially overtaken Microsoft and Apple to become the world’s most valuable company, hitting a staggering $3.46 trillion in market capitalization. The milestone follows the company’s release of record-breaking financial results for the first quarter of fiscal year 2026, driven largely by soaring global demand for artificial intelligence (AI) hardware.
The chipmaker reported $44.1 billion in revenue for the quarter ending April 27, 2025, marking a 69% year-over-year increase and a 12% jump from the previous quarter. The figure exceeded analyst expectations, with LSEG polling forecasting $43.31 billion in revenue.
AI Surge Powers Data Center Growth
Nvidia’s explosive growth is being fueled by the ongoing AI boom. The company’s data center division alone generated $39.1 billion in revenue—up 10% from Q4 and 73% year-over-year—as tech firms, cloud providers, and governments accelerate investments in AI infrastructure.
Nvidia CEO Jensen Huang said in a statement that nations around the world now view AI as “essential infrastructure, like electricity and the Internet,” emphasizing the central role Nvidia plays in this technological shift.
“Our GPUs and platforms are powering everything from scientific research to next-generation cloud computing and AI factories,” Huang said.
Gaming and Consumer Growth Also on the Rise
While data center revenue remains Nvidia’s dominant driver, the company’s gaming segment also reached a new high, generating $3.8 billion, a 48% increase quarter-over-quarter and 42% year-over-year. Growth in this division is expected to continue, buoyed by the upcoming release of Nintendo’s Switch 2 console, which is powered by Nvidia hardware and set to launch on June 5.
Earnings Snapshot
- Q1 FY2026 revenue: $44.1 billion
- Quarter-over-quarter growth: +12%
- Year-over-year growth: +69%
- Data center revenue: $39.1 billion
- Gaming revenue: $3.8 billion
- Non-GAAP diluted EPS: $0.81
Nvidia’s Meteoric Rise
The company’s valuation has soared amid global AI adoption, positioning Nvidia not only as a hardware provider but as a key enabler of next-generation computing technologies. With the $3.46 trillion market cap, Nvidia has overtaken long-time tech giants Microsoft and Apple, underscoring how central AI—and the chips that power it—has become to global innovation and economic growth.
As of this week, Nvidia stands at the epicenter of a generational technology shift, cementing its status as a cornerstone of the modern AI economy.
