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Nvidia has become the United States’s most valuable publicly-listed company after its share price rose to an all-time high on June 18, topping Microsoft.

The tech firm’s share price rose 3.6% to $3.34 trillion, with the price nearly doubling since the start of this year. Closing at almost $136, the stock increase pushed its market capitalization beyond that of Microsoft, solidifying its position as the most valuable tech company after surpassing Apple earlier this month.

Nvidia’s ascent is among the fastest in market history. A mere two years ago, the company was valued at just over $400 billion, but it has since experienced meteoric growth, surging from $1 trillion to over $3 trillion in a single year.

The Jensen Huang co-founded company’s rise has been fueled by its dominance in the artificial intelligence (AI) chip-making business, which is also experiencing massive growth.

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Nvidia’s chips have been essential in the creation and training of sophisticated AI systems and generative AI models, the most well-known of which being OpenAI’s ChatGPT.

The emergence of powerful AI technology initially propelled Microsoft to the top spot in market capitalization in January, dethroning Apple. However, the AI boom has since pushed Nvidia to seize the crown. Not to be left behind, Apple recently announced its own foray into the AI arena, with plans to integrate the technology into its products, including the iPhone, this year.

As competition among AI developers heats up, investors believe Nvidia’s earnings can grow even more as demands for its chips continue to soar. 

Last month, Nvidia announced impressive Q1 results, raking in a total of $26 billion in revenue for the quarter. The company's data center segment was a major driver, generating a remarkable $22.6 billion in revenue alone.

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