Nvidia surpasses Microsoft to become the world’s most valuable company.

Nvidia, a pioneer in the artificial intelligence boom, has claimed the title of the world’s most valuable company, displacing Microsoft from the top spot.

On Tuesday, Nvidia's market capitalization reached $3.335 trillion as its stock rose by 3.5% to $135.58. This achievement follows closely after the Santa Clara, California-based company recently surpassed Apple to become the world’s second most valuable company.

Meanwhile, Microsoft and Apple, now holding the second and third positions, saw their shares decline by 0.45% and 1.1% respectively.

Nvidia's remarkable ascent, which has driven record highs in the S&P 500 and Nasdaq indexes, continues a streak of success fueled by strong demand for its graphics processing units (GPUs), crucial for AI development. Tech giants like Microsoft, Meta, and Google have driven this demand.

In 2022 alone, Nvidia's stock price has surged nearly 182%, following a more than tripling in 2021. The company dominates approximately 80% of the AI chip market for data centers, essential for running AI models like OpenAI’s ChatGPT.

Since its initial public offering in 1999, Nvidia's shares have skyrocketed by 591,078%. According to the Kobeissi Letter newsletter on capital markets, an investor who invested $10,000 in Nvidia in 1999 would now hold $59,107,800 worth of stock.

Initially focused on producing chips for computer games, Nvidia's meteoric rise has made its CEO, Jensen Huang, one of the world’s wealthiest individuals, with an estimated net worth exceeding $117 billion, according to Forbes.