Nvidia, a key player in the tech industry, surpassed Microsoft and Apple to become the most valuable publicly traded company in the world on Tuesday. The company’s stock rose 3.5%, lifting its market value to about $3.3 trillion, while competitors Microsoft and Apple dipped.
The graphics chip-centric company has skyrocketed in value in the past two years, from $400 million two years ago, due to the company making it possible to create artificial intelligence systems with its graphics processing unit expertise.
Nvidia’s chips are often used in AI systems, and the company controls more than 80% of that market, according to the New York Times.
With AI’s recent rise, Nvidia has followed. The company’s valuation is not entirely based on its current profits but rather on its potential, given Microsoft and Apple reported more than $21 billion in profit.
“No one else fully saw or…
