TMTPOST -- Nvidia Corporation on Tuesday reclaimed a crown as the world’s most valuable company amid strong shares rebound that brought the poster child for the artificial intelligence (AI) boom around $1 trillion to its market value.

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Nvidia shares settled 2.8% higher on Tuesday, leading U.S. stock indexes higher as the S&P 500 and Nasdaq Composite rose 0.58% and 0.81%, respectively, hitting their highest close in more than three months. As of close, Nvidia wiped out losses of stocks over the past four months and now has a market capitalization of $3.45 trillion, overtaking Microsoft Corporation with a $3.44 trillion market cap.

This is the first time for Nvidia to regain the top spot by market cap since January 24, and the first time since March 25 that Nvidia has closed with a market value topping Microsoft’s. Back then Apple was the top valuable listed company, but the iPhone maker’s shares dropped more than 9% since then amid headwinds, especially tariff threats between U.S. and China.

Nvidia’s stocks have jumped about 24% in the past month, and extended their rally these days after the leading AI chipmaker posted earnings smoothing concerns over the supply chain hurdles and shock from the trade war as the Trump administration is tightening export control on AI chips to China.

Nvidia on May 28 posted revenue of $44.1 billion for its first fiscal quarter ended April 27, beating analysts expected $43.29 billion. That represented a year-over-year (YoY) increase of 69% in sales, slowing down with a 78% surge three months earlier. On non-GAAP basis, adjusted earnings per share (EPS) shot up 33% YoY to $0.81 after a 71% YoY increase for the preceding quarter, while EPS excluding charge related to H20 chips and tax impact stood at $0.96, still better than estimated $0.93. Adjusted gross margin including H20 charge dropped to 61%, down from 78.9% a year ago. Without H20 charge, the margin was 71.3%, compared with estimates of 71%.

Nvidia said in a statement it incurred a $4.5 billion charge during the April quarter associated with H20 excess inventory and purchase obligations as the demand for H20 diminished under the new requirements for export license. The AI chip giant on April 9 was informed by the U.S. government that a license is required for exports of its H20 products, which were designed primarily for China, into the market.

Nvidia expected revenue to be $4.5 billion, plus or minus 2%. The outlook is roughly in line with Wall Street forecast as the mid-point is slightly below the consensus expectation of $45.5 billion. The company said its sales guidance reflected a loss in H20 revenue of around $8 billion. Adjusted gross margin is projected to be 71.5% to 72.5%, in line with estimated 71.7%.

Taiwan Semiconductor Manufacturing Co. (TSMC) also brought positive news as Nvidia’s key supplier reaffirmed AI chip demand remain robust. It is expected TSMC’s revenue and earnings to reach record highs this year, and tariffs are typically borne by importers and won’t directly affect the world’s largest contract chip manufacurer, said CEO C.C. Wei at an annual shareholders’ meeting on Tuesday.

Wei reiterated confidence in the strength of AI-driven semiconductor demand despite increasingly strained supply chain amid mounting uncertainty over U.S. trade policies. “AI will be something you absolutely can’t live without in the future,” Wei told reporters after the meeting. “As long as there’s demand for AI, TSMC will always be a great company with a really promising outlook.” Though he warned tariffs, if they result in a global economic downturn and higher prices, would hit demand and indirectly affect TSCM’s business.

Jefferies analysts added Nvidia to their list of highest-conviction, buy-rated stock picks in a note on Tuesday. These analysts said in the note that Nvidia is "the dominant supplier of AI accelerators" within the data-center industry, which is quickly growing due to AI demand and development. With the company's ramp of its Blackwell AI platform "fully underway," the analysts think Nvidia's gross margin should improve throughout the rest of the year, from the low-70% range up to the mid-70% range.