On Tuesday, Nvidia Corporation (NVDA  ) reclaimed the title of the world's most valuable publicly traded company, surpassing Microsoft Corporation (MSFT  ).

What Happened: Shares of Nvidia rose 2.80% during Tuesday's regular session and closed at $141.22, according to data from Benzinga Pro.

This boosted Nvidia's market capitalization to $3.444 trillion, slightly ahead of Microsoft's $3.441 trillion.

Apple (AAPL  ), once the longtime market cap leader, now ranks third at $3.036 trillion, followed by Amazon (AMZN  ) and Alphabet (GOOG  ) (GOOGL  ).

Company Name/ Market CapClosing/ Share Price (Tuesday)

  1. NVIDIA$3.444 trillion$141.22
  2. Microsoft$3.441 trillion$462.97
  3. Apple $3.036 trillion$203.27
  4. Amazon $2.183 trillion$205.71
  5. Alphabet $2.024 trillion$166.18/$167.71
Why It's Important: The rally follows Nvidia's first-quarter earnings last week. The company reported a revenue of $44.1 billion, marking a 69% increase year-over-year and a 12% rise from the previous quarter. The results surpassed Wall Street's consensus estimate of $43.2 billion.

The surge reflects booming demand for its AI chips, used in everything from data centers to generative AI platforms.

Morgan Stanley has also reaffirmed its "Overweight" rating on Nvidia, calling it a "unique opportunity" in the semiconductor industry and maintaining it as its top pick. Despite sector slowdown concerns, analysts remain confident in Nvidia's growth.

Meanwhile, Microsoft, which reported third-quarter revenue of $70.07 billion and exceeded the Street consensus estimate of $68.43 billion, has been going through massive layoffs.

On Monday, it was reported that Microsoft has announced another round of layoffs, cutting over 300 jobs just weeks after its largest workforce reduction in years.

Price Action: In the after-hours trading, Nvidia gained an additional 0.19% and had reached $141.49 at the time of writing.

According to Benzinga's Edge Stock Rankings, Nvidia shows a strong price trend across short-, medium and long-term periods.