Nvidia, the chip maker at the forefront of the artificial intelligence (AI) boom, surpassed Microsoft and Apple on Tuesday to become the world's most valuable public company. Nvidia's stock rose over 3 percent, giving them a market valuation of $3. 34 trillion, slightly higher than Apple and Microsoft, which were valued at around $3. 29 trillion and $3. 31 trillion, respectively. The demand for Nvidia's computer chips and software, essential in training AI algorithms, has soared as the tech and business sectors embrace the AI revolution. As a result, Nvidia's revenue surged from $7. 2 billion to $26 billion in the first quarter of this year. This AI boom has caused a reshuffling among the world's largest companies. In January, Microsoft overtook Apple as the most valuable company, driven by investor optimism in the flourishing technology. Nvidia, already a prominent player, stands out with its exceptional growth story, particularly in the tech industry. Industry experts like Gene Munster, managing partner at Deepwater Asset Management, believe that Nvidia still has room to grow, stating that if AI is as transformative as anticipated, Nvidia's value will continue to rise. Nvidia's ascent emphasizes the deep conviction among investors that AI will revolutionize various aspects of modern life.

The technology's computational demands require robust processing power, which has resulted in a flurry of data center construction and the adoption of Nvidia and other chip manufacturers' products for new AI tasks. Professional investment funds and individual retail investors have eagerly invested in Nvidia, propelling the stock price even further than its revenue growth. Since OpenAI's ChatGPT launched in November 2022, sparking interest in AI, Nvidia's stock price has soared by approximately 700 percent. With a market share of around 70 percent in AI chips, Nvidia has become a significant player in the industry, attracting regulatory scrutiny. However, Nvidia declined to comment on the matter. Before the AI boom, Nvidia was primarily known for producing computer chips for video game consoles and computers. Their "graphics processing units" (GPUs) were well-suited for gaming and also proved ideal for AI training, given their computational capabilities. As AI research developed in the mid-2010s, Nvidia's GPUs became the go-to choice for researchers, prompting the company to enhance its software for AI purposes. While competitors like AMD and Intel have tried to catch up, analysts and AI researchers believe Nvidia's head start will continue to benefit them for years to come.