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(Reuters) – The unprecedented rise of NVIDIA continues.

NVIDIA on Tuesday became the world’s most valuable company, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate Artificial Intelligence (AI) technology.

Shares of the chipmaker climbed 3.5% to $135.58, lifting its market capitalisation to USD $3.335 trillion, just days after overtaking iPhone maker Apple  to become the second most valuable company.

Microsoft’s stock market value was USD $3.317 trillion as its shares dipped 0.45%.

Apple’s stock slipped over 1%, leaving its value at USD $3.286 trillion.

This stunning surge in market value over the past year has become emblematic of a Wall Street frenzy driven by optimism about emerging AI technology.

NVIDIA Is Rising with the Rise of AI

The surge in NVIDIA’s market value has been driven by demand for its chips, which are the gold standard in the AI space. The company’s shares are up more than 170% this year and have risen about 1,100% since their October 2022 low.

Blockbuster earnings and broadening investor enthusiasm over AI are supercharging the GPU maker’s remarkable rally. That fervor has been reflected in NVIDIA’s market value, which took only 96 days to go from $2 trillion to $3 trillion.

While Nvidia’s rally has lifted the S&P 500 and Nasdaq to record highs, some investors worry that unbridled optimism about AI could evaporate if signs emerge of a slowdown in spending on the technology.

“It’s NVIDIA’s market; we’re all just trading in it,” said Steve Sosnick, Chief Market Strategist at Interactive Brokers.

The GPU leader has also become by far the most traded company on Wall Street, with daily turnover recently averaging USD $50 billion, compared to around USD $10 billion each for Apple, Microsoft, and Tesla, according to LSEG data. The chipmaker now accounts for about 16% of all trading in S&P 500 companies.

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