Nvidia's market value hit $3 trillion for the first time on Wednesday as the chipmaker capitalized on the race among Wall Street giants to dominate artificial intelligence technology.
Shares of the AI chip maker rose 4.75 percent during the session.
Nvidia shares hit a record high of $1,219.93 on Wednesday, giving the company a market value of $3 trillion.
Nvidia has now surpassed Apple in market value, as investors continue to bet on the chipmaker behind the artificial intelligence boom. It is now the second-most valuable public company, after Microsoft.
Apple's value after Wall Street closed yesterday was $2.99 trillion, while Microsoft maintained its lead as the largest company by market value at $3.15 trillion.
Nvidia shares have risen more than 24 percent since the company reported first-quarter earnings in May and have been on a strong rise since last year.
The company controls an estimated 80 percent of the market share in AI chips for data centers, which are attracting billions of dollars in investment from major cloud computing providers.
Investors are also becoming more comfortable with Nvidia's continued explosive growth in sales to a handful of cloud companies.
For the most recent quarter, revenue from Nvidia's data center segment, which includes sales of Nvidia's graphics processing units, rose 427 percent year over year to $22.6 billion, accounting for about 86 percent of the company's total revenue.
Meanwhile, Apple shares are up just 5 percent this year, as the iPhone maker's sales growth has faltered in recent months.
In its latest quarterly earnings report, Apple said total sales were down 4 percent and iPhone sales were down 10 percent, compared to the same period last year.
Apple faces strategic questions about demand in China, manufacturing and mixed reactions to its new virtual reality headset, the Vision Pro.
