Hardware tech company Nvidia has now surpassed Microsoft in valuation, making it the most valuable company in the United States. Perception that the chipmaker is leading the artificial intelligence (AI) revolution has fueled its economic rise.

Nvidia took the lead from Apple just a week ago. Apple and Microsoft had been neck and neck since 2019 after they surpassed Exxon Mobil and Philip Morris International.

Nvidia’s shares increased 3.5 percent by the close of day for a record-high of $135.58. The company is now worth $3.34 trillion. It has added $3 trillion to its valuation over the last 20 months.

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 From the 3rd quarter of 2023 to the 2nd quarter of 2024, Nvidia has seen explosive growth in both revenue and earnings. Revenue nearly doubled from $13.51 billion to $26.04 billion, and their profit margin increased from 45.8 percent to 57.1 percent.

As MarketWatch notedNvidia is now worth more than the entire German stock market. Companies primarily listed on the German market had an aggregate value of $2.51 trillion as of Wednesday, according to FactSet. Nvidia’s valuation hit $2.6 trillion after its extended market trading.

Nvidia chips are seen as the engine of the AI revolution, the bedrock or framework that allows AI software developers to experiment with vaster lines of code and more complex models.

While Amazon, Microsoft, Meta, and others are all competing to develop the best AI bot, generating buzz in the process, Nvidia has been reaping the rewards on the other end.

Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.

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