Nvidia Poised to Surpass Microsoft as Most Valuable Company

Recent trends indicate that Nvidia (NASDAQ: NVDA) is on track to overtake Microsoft (NASDAQ: MSFT) as the world’s most valuable company. Notably, Nvidia needs only a 4% increase in its stock price to achieve this milestone, which may occur within days or weeks.

Nvidia’s Market Position and Upcoming Earnings Report

Nvidia’s upcoming fiscal 2026 first-quarter earnings announcement, scheduled for May 28, 2025, could be a catalyst for this leap. Analysts predict revenues of around $43 billion and earnings of $0.87 per share, which signals exciting potential for investors.

If Nvidia exceeds these expectations, its stock price could rise significantly. A strong forecast for the upcoming fiscal year would also bolster investor confidence.

Nvidia vs. Microsoft: Comparing Performance

The two companies have differing growth trajectories. Nvidia significantly outperformed Microsoft with a year-over-year revenue growth of 78% in its fiscal 2025 Q4, compared to Microsoft’s 13% growth during the same period.

In terms of earnings, Nvidia also presented a stronger picture, with its GAAP earnings climbing 82% year-over-year, while Microsoft’s rose by 18%.

Importantly, Nvidia’s price-to-earnings-to-growth (PEG) ratio stands at 1.94, which suggests a more favorable valuation compared to Microsoft’s 2.13 ratio.

Potential Risks to the Prediction

However, it’s crucial to acknowledge the risks surrounding Nvidia’s ascent. Potential setbacks such as U.S. trade policy concerns, a decrease in demand for AI chips, or increased competition could hinder Nvidia’s growth.

Additionally, volatility may be a factor; Nvidia could briefly exceed Microsoft’s market cap before facing declines.

Conversely, significant advancements in AI technology could lead to a dramatic increase in demand for Nvidia’s GPUs, supporting a sustainable rise in its valuation.

In the coming weeks, we’ll see if Nvidia can solidify its status as the leading tech company. Regardless of the outcome, strong returns are expected from Nvidia throughout the remainder of this decade.

Final Thoughts

As events unfold, Nvidia’s potential to surpass Microsoft marks an important moment in the tech sector, fueled by robust earnings reports and market dynamics.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.