US-based chip manufacturer Nvidia reached a milestone on Tuesday as the most valuable company on the stock market, driven by growing demand for artificial intelligence technology.
Nvidia's market capitalization hit $3.33 trillion, surpassing software giant Microsoft. The shares of Nvidia finished 3.5% higher on Tuesday, while Microsoft's shares saw a slight drop.
Nvidia's chips have become a key technology for the future of AI. The chips are ideal for computing work, particularly in training AI software in data centres.
The only other publicly listed company with a market capitalization above the $3 trillion mark is Apple, whose stock price surged last week after it announced new AI features.
Meanwhile, Microsoft is incorporating artificial intelligence into its products through a multi-billion dollar partnership with OpenAI, the creator of chatbot ChatGPT.
Nvidia is capitalizing on this trend by selling thousands of expensive chip systems to big players like Microsoft, Google and Facebook parent company Meta.
Nvidia's rise in share price on Tuesday followed an announcement of a partnership with Hewlett Packard Enterprise to implement AI technology in businesses.