With shares up over 3.4 percent this week, AI chipmaker Nvidia reclaimed its status as the most valuable firm, surpassing tech behemoth Microsoft with a market value of approximately $3.45 trillion, more than Microsoft's $3.44 trillion.

Nvidia has maintained its growth trajectory despite export restrictions and tariff worries.

Nvidia's AI chips, which are utilized by businesses like OpenAI, drove the company's 69 percent topline growth to $44.06 billion and $0.96 earnings per share (EPS) in the most recent quarter. Both of these numbers exceeded analyst projections.

Nvidia's market capitalization has increased by $1 trillion as a result of its recovery and subsequent upswing over the past two months.

Specifically, whether US restrictions on the sale of advanced semiconductors in China would impede Nvidia's rapid revenue growth, the company's ability to expand supply of its latest Blackwell chips, and the outlook for artificial intelligence spending were all addressed in last week's earnings report.

Despite the significant increase, Nvidia is currently trading at only 29 times its forecast profits for the next 12 months, which is significantly less than the average of 34 times over the last ten years. In comparison, even though Wall Street forecasts predict sales growth this year, the Nasdaq 100 is priced at 26 times, which is a small portion of Nvidia's.

Among the Magnificent Seven, which also consists of Apple Inc., Amazon.com Inc., Alphabet Inc., Tesla Inc., and Meta Platforms Inc., the stock has the lowest PEG ratio (a measure of valuation in relation to growth) at less than 0.9.

In the most recent quarter, 13 percent of Nvidia's revenue came from China, thus the firm is still at risk if the trade negotiations with the US worsen. However, during US President Donald Trump's visit, it inked purchase agreements with Middle Eastern nations that help offset some of those concerns.

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Amazon, Microsoft, Meta, and Alphabet—which collectively account for over 40 percent of Nvidia's revenue—keep making significant investments in AI infrastructure. The average of expert predictions indicates that the four businesses' capital expenditures will amount to approximately $330 billion in 2026, which is six percent more than the predicted spending this year.