Nvidia (NVDA) has become the world’s most valuable company, surpassing Microsoft (MSFT) in terms of market value. This increase is due to Nvidia’s dominance in the artificial intelligence (AI) hardware market. Nvidia shares rose 3.5% to $135.58, pushing its market capitalization to $3.335 trillion. This surpasses Microsoft’s $3.317 trillion market cap and Apple’s $3.286 trillion valuation. Nvidia shares have nearly tripled this year, reflecting strong demand for AI processors.

The rapid growth of artificial intelligence in the last few years has accelerated the company’s growth

This increase is a reflection of investors’ widespread optimism about the future of artificial intelligence technology. However, some analysts warn that this optimism may wane if there are signs of a slowdown in spending on artificial intelligence technologies.

Nvidia’s dominance in the AI ​​hardware market is a key factor in its success. Its processors are considered to be better than its competitors’ offerings, leading to a situation where demand far exceeds supply. This made Nvidia the most traded company on Wall Street, averaging $50 billion in daily turnover.

Nvidia’s stock price recently reached an all-time high, increasing its market value by more than $110 billion. This increase is equivalent to the entire cost of Lockheed Martin. The company’s market value rose rapidly; It reached from $1 trillion to $2 trillion in just nine months and to $3 trillion in three months.

Nvidia has consistently beaten Wall Street’s revenue and profit expectations, helped by rising demand for graphics processors as companies rapidly adopt AI applications. The company also recently split its shares 1-for-10, making it potentially more attractive to retail investors. But despite the stock’s rise, the company’s earnings estimates have fallen as analysts’ expectations for future earnings have risen.