(Bloomberg) — Nvidia Corp. became the world’s largest company on Tuesday, surpassing Apple Inc. surpasses and underlines how dominant artificial intelligence has become on Wall Street.

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Shares rose 2.9% to $139.93, resulting in a market cap of $3.43 trillion, ahead of Apple at $3.38 trillion. Microsoft Corp., which Nvidia acquired last month, has a market cap of $3.06 trillion. Nvidia is up more than 850% since the end of 2022.

“Over the last few quarters, it felt like people were mostly concerned with inflation numbers, jobs numbers and Nvidia numbers,” said Fall Ainina, research director at James Investment Research. “Nvidia overtaking Apple in market capitalization not only indicates that it is the biggest beneficiary of the AI ​​infrastructure cycle, but it also suggests that people expect the AI ​​boom to continue.”

The chipmaker accounts for 7% of the weight of the S&P 500 Index and is responsible for about a quarter of the benchmark’s 21% gain this year. Nvidia previously won the title of largest company in June, although it only held the record for a day.

The biggest companies on Wall Street are all heavily exposed to artificial intelligence: Apple with its recently launched AI iPhones; Microsoft, Amazon.com Inc. and Alphabet Inc. with their cloud operations and AI services; and Meta Platforms Inc.’s AI features and ad targeting. With the exception of Apple, these companies are all among Nvidia’s largest customers, and they have emphasized their commitment to continue spending on AI.

Last week, Apple’s results underscored concerns about revenue growth, along with weakness in China. Nvidia will report later this month.

Not only are the largest companies by market capitalization AI players, but so are the year’s best-performing stocks. Nvidia’s 183% gain is the third-biggest in the S&P 500 this year, behind Vistra Corp. – the energy producer that has seen a surge in demand for AI – and data analytics software company Palantir Technologies Inc.

The recent strength has come as the company eased investor concerns about issues with the Blackwell chip, which was delayed due to technical issues, as well as its long-term growth prospects.

Analysts expect Nvidia’s revenue to more than double in the current fiscal year and rise another 44% in the next fiscal year, according to data compiled by Bloomberg. Wall Street analysts have consistently raised estimates for Nvidia’s revenue and earnings over the past quarter.

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