Nvidia shares jumped over 4% on Wednesday, closing at a record $154.31 — surpassing its previous high of $149.43 set in January. This surge reflects growing investor confidence in the company’s dominant role in artificial intelligence (AI), even in the face of mounting geopolitical and regulatory challenges. Market sentiment remains strong, as Nvidia continues to show resilience and innovation in AI-driven technologies.
Nvidia Becomes Most Valuable Company Despite Major Setbacks from China Export Ban
With a market capitalization of $3.77 trillion, Nvidia has become the largest publicly traded company in the world, overtaking Microsoft and Apple. Its central role in manufacturing graphics processing units (GPUs) — the backbone of AI infrastructure — has been a key factor in this rise. Nvidia’s products are critical for powering large language models and other AI applications, keeping it at the forefront of the AI boom.
Nvidia Hits Record High and Becomes World’s Most Valuable Company Despite China Chip BanDespite this success, Nvidia has faced significant obstacles. The U.S. government, under the Trump administration, has enforced new export restrictions that bar Nvidia from selling its H20 AI chips to China — a processor designed to comply with earlier limitations. Nvidia estimated the move would cost the company $8 billion in sales and result in a $4.5 billion inventory write-down. CEO Jensen Huang confirmed the company is no longer counting on any future revenue from China.
Nvidia Faces Export Hurdles but Stays Focused on Growth and Future Innovation
Nvidia’s CEO has been vocal about the broader implications of these restrictions. Huang declared that the $50 billion Chinese AI chip market is effectively “closed to U.S. industry.” Additional export controls are reportedly in the pipeline, which could further impact sales and limit access to foreign markets. Nonetheless, Nvidia appears committed to adapting its strategies and product lines to meet these evolving challenges.
Nvidia’s financial performance remains robust. In its May earnings report, the company posted a 69% increase in revenue year-over-year, with a 73% jump in its data center segment. Analysts predict a 53% revenue growth for the fiscal year, reaching nearly $200 billion. At its annual shareholder meeting, Huang emphasized that beyond AI, robotics represents Nvidia’s next major growth frontier — indicating the company’s long-term vision extends well past current product lines.
