Nvidia became the world's most valuable company on Tuesday, overtaking tech heavyweight Microsoft.
The surge in Nvidia's stock is driven by its high-end processors, which are crucial in the race to dominate artificial intelligence technology.
This move came shortly after Nvidia surpassed Apple, which now has a market value of $3.286 trillion.
Microsoft's market value was $3.317 trillion after its shares dipped 0.45 percent.
Nvidia's stock has nearly tripled this year due to high demand for its processors.
Tech giants like Microsoft, Meta Platforms, and Alphabet are competing to enhance their AI capabilities, further boosting Nvidia's growth.
"Nvidia has been getting a lot of positive attention and has been doing a lot of things very correctly, but investors should be careful," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York.
Nvidia's market value grew from $1 trillion to $2 trillion in nine months and reached $3 trillion in just over three months.
The company has consistently exceeded Wall Street's expectations for revenue and profit.
To appeal to individual investors, Nvidia recently executed a 10-for-1 stock split.
