Nvidia overtook Microsoft to become the world’s most valuable company after its share price climbed to an all-time high on Tuesday.
The stock ended the trading day at about $136 making it more valuable than Microsoft. It overtook Apple earlier this month.
The company manufactures computer chips essential for artificial intelligence (AI) software, and the increasing demand for its products has significantly driven its sales and profits in recent years.
Investors believe the company’s earnings have the potential to grow further, leading to a surge in its share price, though some have expressed concerns about its lofty valuation.
Tuesday’s share price means the company is now valued at $3.34tn almost double the value at the beginning of the year.
The fierce competition among AI developers is fierce. Microsoft, Alphabet, Meta and Apple to corner the AI market has benefited Nvidia, which dominates the AI chip market. Therefore, investors believe the company’s value will continue to rise.