Nvidia ,world most valuable semiconductor firm made a history by becoming the first computer-chip company to reach a $3 trillion market. This milestone was achieved as the shares of the Santa Clara, California-based company surged by 5.2% to close at a record $1,224.40, driven by soaring demand for its chips used in artificial intelligence (AI) tasks.

Nvidia shares has increased approximately 147% this year about $1.8 trillion in market value.  demand skyrocket for its chips because is used to power artificial intelligence. This market cap left Apple behind in market cap. On Wednesday, shares rose 5.2% to close at a record $1,224.40 .

vidia has shown no signs of slowing down or letting its rivals catch up; the company’s Chief Executive Officer Jensen Huang said the firm plans to upgrade its so-called AI accelerators every year. Wednesday’s stock gain increased his wealth by more than $5 billion to $107.4 billion, according to the Bloomberg Billionaires Index.

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The rise of generative AI is a new industrial revolution and Nvidia expects to play a major role as the technology shifts to personal computers, Huang told attendees at a keynote address at National Taiwan University.

“We see this sea change as in the very early innings,” said Angelo Zino, senior equity analyst at CFRA Research.

The company has been arguably the biggest beneficiary of a massive flood of AI spending, helping vault the company into a race to claim the title as the world’s most valuable company. The chipmaker still trails Microsoft Corp. by market value, but with shares on a tear Wall Street sees it as only a matter of time before Nvidia overtakes it.

Apple has struggled this year with the technology giant’s shares pressured by concerns over cooling iPhone demand in China and a fine from the European Union. Shares in the company have only recently turned positive for 2024 as investor sentiment toward the iPhone maker is slowly improving.

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