Nvidia has transformed from a graphics card maker into the backbone of the artificial intelligence revolution, becoming one of the world's most valuable companies with a market capitalization exceeding $3 trillion as of May 2025.
The company's meteoric rise has been fueled by unprecedented demand for its graphics processing units (GPUs), which are essential for developing and running AI models. Its share price has increased 845% since January 2023, driven by tremendous demand for its GPUs. After surpassing the $1 trillion mark in mid-2023, Nvidia's market worth increased to $2 trillion by February 2024, and reached $3 trillion just three months later in June 2024. As of November 2024, Nvidia became the largest-listed U.S. company based on market capitalization, surpassing Apple with a value exceeding $3.6 trillion.
The Trump administration has recently made significant changes to U.S. AI policy that directly impact Nvidia. In early May 2025, the administration rescinded U.S. chip export restrictions known as the "AI diffusion rule," effectively stopping a set of artificial intelligence semiconductor limits from taking effect. Nvidia shares climbed in reaction to the news, as the company has been vocal that restricting chip exports limits U.S. leadership in advanced technology. "We welcome the Administration's leadership and new direction on AI policy," an Nvidia spokesperson said in a statement.
However, the relationship between Nvidia and the administration remains complex. While President Donald Trump has voiced his desire for the U.S. to remain an AI leader, his administration recently released a new round of AI chip restrictions targeting China. The Commerce Department issued a warning against the use of U.S. AI chips for Chinese models and singled out "diversion tactics" in supply chains. These new export restrictions came days after the U.S. and China agreed to pause most tariffs on each other.
Beyond export policies, Trump's proposed corporate tax reforms could significantly benefit Nvidia. President Trump has proposed lowering the federal corporate income tax rate to 15%. While a lower corporate tax rate has not always led to a boom in the broader stock market, it could move the needle for individual companies by boosting profit margins. In turn, excess capital could be returned to shareholders through stock buybacks and dividends. Importantly, Nvidia repurchased about $26 billion worth of its stock during the 12-month period that ended in June 2024.
Despite potential headwinds, Nvidia's technological edge remains formidable. The company's H100 data center GPU dominated the industry in 2023 and for most of 2024, based on the Hopper architecture, which has since been superseded by Blackwell and more recently Blackwell Ultra. The upcoming Blackwell Ultra GB300 GPU can deliver up to 50 times more performance than the H100 in certain configurations, as it was designed for next-generation AI models capable of "reasoning." This continuous innovation positions Nvidia to maintain its leadership in the AI chip market for the foreseeable future.