New Delhi: Al chipmaker Nvidia has surpassed technology giant Apple to become the world’s second most valuable company, just behind Microsoft. Nvidia’s market cap crossed $3 trillion for the first time due to the AI boom.

Nvidia’s shares rose by 5.16 per cent in the last trading session and the company’s market cap has reached $3.01 trillion. Apple’s shares have increased by 0.78 per cent and its market cap is $3 trillion. Nvidia is leading the way because its chips are powering much of the rush into AI, and it rose another 5.2 per cent to bring its gain in 2024 to more than 147 per cent. Nvidia shares rose 216.75 per cent to $1,224.40 on Tuesday (June 5, 2024) from $386.54 on January 6, 2023. Nvidia’s stock continues to rise due to increasing Artificial Intelligence (AI) chip demand. In the last year, the company’s stock price surged more than 200 per cent.

In the last five years, Nvidia stocks generated more than 3,224 per cent return to investors. The company will split its stock 10 for 1 later this month. Software giant Microsoft is the world’s largest company with a market cap of $3.15 trillion.

This is not the first time that Nvidia’s market cap is more than Apple’s. This had happened before in 2002 also. At that time the valuation of both companies was less than $10 billion.

The reason behind the rise in Nvidia’s stock is the increase in the use of AI. Due to this, the demand for chips made by the company has increased all over the world.

The company recently decided to design a new AI chip every year. The company’s CEO Jensen Huang has described Generative AI as a new industrial revolution. He had said that Nvidia would play a big role in this transformation. Apple has had to face many challenges since the start of 2024. iPhone sales are declining in China while demands from the European Union remain stable.