Nvidia has overtaken Microsoft to claim the title of the world’s most valuable publicly traded company. The rapid rise of this chipmaker has been driven by its strategic focus on dominating the artificial intelligence (AI) market.

Nvidia’s ascent began with its advanced chips, which are central to the AI revolution. As companies around the globe integrate AI applications, demand for Nvidia’s high-end processors has surged. The company’s stock has nearly tripled this year, reaching a record high of $135.58 per share. This surge added over $110 billion to its market capitalization, equivalent to the entire value of Lockheed Martin .

Nvidia’s rise can be attributed to its focus on AI computing. As AI-driven technologies become more prevalent, investors recognize that Nvidia’s chips are crucial to this transformation. Its Blackwell AI chips are in such high demand that supply constraints are expected to persist well into the next year .

Microsoft and Apple, once the leaders in market value, now trail behind Nvidia. Microsoft’s market value stands at $3.317 trillion, while Apple is at $3.286 trillion. Both tech behemoths have seen their shares dip, unable to match Nvidia’s staggering growth. The chipmaker’s market capitalization now stands at an impressive $3.335 trillion .

Investors are cautiously optimistic but also aware of potential risks. While Nvidia’s growth seems unstoppable, there is concern about a potential market downturn if AI development spending decreases. As the AI landscape evolves, Nvidia must continue to innovate and adapt to changing dynamics. For now, Nvidia dominates the market, and its influence is undeniable .

Nvidia’s rise underscores the transformative power of AI. As the company continues to innovate, it remains a force to be reckoned with, reshaping industries and redefining what it means to be the world’s most valuable company.