Nvidia surpasses Microsoft to become the largest public company in the world

NEW YORK (CNN) — Nvidia, Wall Street’s artificial intelligence poster child, is now the most valuable company in the world, taking the crown from Microsoft.

Nvidia’s market capitalization closed at roughly $3.34 trillion on Tuesday, edging past Microsoft’s $3.32 trillion value. Apple is the third most valuable company in the U.S. with a $3.27 trillion market cap.

Nvidia shares closed 3.5% higher on Tuesday. Microsoft shares fell 0.5% and Apple shares lost 1.1%. Nvidia earlier this month joined the tech giants in becoming the only U.S. companies to cross a $3 trillion market cap.

The chipmaker’s stock has been on a tear for the last year and a half. Nvidia’s chips are unmatched in producing processors that power artificial intelligence systems, including for generative AI, the technology backing OpenAI’s ChatGPT that can create text, images and other media.

Nvidia is the leader of the tech behemoth Magnificent Seven stocks that have driven much of the stock market’s returns since the artificial intelligence frenzy overtook Wall Street last year. The company’s stock is up roughly 175% for the year and was the S&P 500 index’s best performer in 2023.

The Jensen Huang-led company’s dethroning of Microsoft comes as Wall Street’s most prominent tech companies battle for the coveted top spot. Apple on June 13 became the most valuable US company as announcements made at its annual Worldwide Developers Conference, including generative AI features for the iPhone, sent the stock climbing. The iPhone maker’s market cap slid back below Microsoft’s just a day later.

Nvidia completed a 10-for-1 stock split on June 7. The chipmaker last month posted yet another blockbuster quarter, noting a 262% increase in revenue and a 462% increase in profits year-over-year.