Nvidia Is Officially the Largest Stock in the World. Is the Artificial Intelligence (AI) Giant Still Cheap? - The Motley Fool

NVIDIA has officially become the largest company in the world, with a market capitalization exceeding $5.1 trillion, significantly surpassing Alphabet’s $4.5 trillion. While some investors may conside... Read original →

NVIDIA’s ascent to the world’s most valuable company signals AI compute has shifted from optional to essential infrastructure. Its GPU dominance extends beyond hardware—CUDA’s ecosystem lock-in forces cloud providers and chip designers to realign their stacks, creating a technical moat. Yet tightening U.S. export controls on advanced AI chips to China raise compliance costs and spur alternative ecosystems in Taiwan, China, South Korea, and mainland China. Competitors like AMD (MI300) and Google (TPU v5) are closing in, but NVIDIA counters with Blackwell’s performance lead and integrated systems like GB200 NVL72 to lock in hyperscalers. Over the next 12–24 months, surging data center capex will sustain its >74% gross margins, funding R&D—but geopolitical supply shocks or accelerated in-house ASIC adoption by clients could trigger valuation compression.