Nvidia reclaims 'world's most valuable company' title

Nvidia's stock surged to an all-time high on Wednesday, climbing over 4% to $154.10 per share and pushing its market value to $3.76 trillion—overtaking Microsoft ($3.65 trillion) to reclaim its position as the world's most valuable company, according to a recent report by Reuters. 

As per the report, the rally was fueled by analyst predictions of a new "Golden Wave" in AI adoption, with investment bank Loop Capital raising its price target for Nvidia from $175 to $250 and maintaining a "Buy" rating.

Loop Capital analyst Ananda Baruah cited stronger-than-expected demand for Nvidia's high-end AI chips as generative AI adoption accelerates, adds Reuters.

Despite its meteoric rise, Nvidia's current price-to-earnings ratio of 30x remains below its five-year average of 40x, reflecting rapidly growing earnings that have kept pace with its stock gains. The chipmaker has now rebounded more than 60% since its April low, when markets were rattled by global tariff concerns, states the report. 

Nvidia, Microsoft, and Apple have frequently swapped places as the top-valued company over the past year, with Apple now trailing at $3.0 trillion at the time of the Reuters report.

The rally signals renewed investor confidence in the AI sector, which continues to drive tech stock performance.