On Wednesday, NVIDIA's stock price reached a new all-time high, surpassing a market value of $3 trillion and overtaking Apple to become the second-largest company in the US by market capitalization. NVIDIA's success is attributed to the soaring demand for its AI chips, with its data center business revenue growing an astonishing 427% in the latest quarter. NVIDIA CEO Jensen Huang has positioned the company as a leader in the AI revolution, and investors have taken notice.

On Wednesday, NVIDIA's market value reached $3.019 trillion, with its stock price rising over 5%, surpassing Apple's market value of $2.99 trillion. Microsoft still holds the top spot with a market value of $3.15 trillion.

NVIDIA's dominance in the AI chip market is evident, with an estimated 80% market share in data centers. The company's data center business, including GPU sales, has experienced explosive growth, with revenue skyrocketing to $22.6 billion in the most recent quarter, accounting for 86% of the company's total sales.

Investor confidence in NVIDIA's ability to sustain its tremendous growth has been bolstered by billions of dollars in spending from major cloud providers. This year, the company's stock price has surged over 147%, adding approximately $1.8 trillion to its market value.

In contrast, Apple's growth has stagnated in recent months, with overall sales declining by 4% and iPhone sales in the latest quarter dropping by 10%. The iPhone manufacturer faces challenges such as manufacturing issues and mixed reactions to its new virtual reality headset, Vision Pro.

During its transformation from a gaming hardware company to a company focused on AI chips and cloud services, NVIDIA's market value has reached the trillion-dollar level. Over the past five years, the company's stock price has soared by over 3290%, reflecting the market's enthusiasm for its AI-driven growth potential.

While NVIDIA currently holds a dominant position in the AI chip market, it also faces challenges from competitors such as AMD and Intel, who are developing their own AI chips. Additionally, NVIDIA must navigate challenges posed by customers like Amazon, Google, and Microsoft, who are attempting to reduce their reliance on its chips.

Despite these challenges, NVIDIA remains the undisputed leader in the artificial intelligence chip market, and its position is expected to remain strong in the foreseeable future. The company recently announced plans to launch the Blackwell Ultra chip in 2025 and the Rubin platform in 2026, further solidifying its commitment to maintaining a leading position in the field of AI technology.