Nvidia Corp emerged as the largest company in the world on Tuesday backed by the boost from AI. The firm surpassed the iPhone maker, Apple Inc, to become the largest firm in the world. This highlighted how artificial intelligence has started to dominate on Wall Street. 

The firm’s market capitalisation soared to $3.43 trillion after its shares surged 2.9 per cent to $139.93 apiece, reported Bloomberg. Meanwhile, the m-cap of Apple stood at $3.38 trillion.

Last month, Nvidia passed Microsoft Corp which has a valuation of $3.06 trillion. Since the end of 2022, Nvidia has surged ahead by over 850 per cent. Fall Ainina, Director of Research, James Investment Research, noted, “Over the past several quarters, it has felt like people basically care about inflation numbers, job numbers, and Nvidia numbers. Nvidia overtaking Apple in market cap not only conveys that it is the biggest beneficiary of the AI infrastructure cycle, but it suggests people expect the AI boom will continue.”

In the S&P500 index, Nvidia accounts for 7 per cent of the overall weight and contributed to nearly a quarter of the benchmark’s 21 per cent gains in the year. 

Notably, artificial intelligence is a dominant component in all the biggest companies in the US market. Apple with its AI iPhones, Microsoft and Alphabet with their cloud businesses and AI services, Meta Platform’s AI features, etc are all heavily exposed to AI. Apart from Apple, all these firms are among Nvidia’s largest customers.

The report noted that analysts anticipate the company’s revenue to jump more than double in the current fiscal year and climb more than 44 per cent in the following fiscal. The experts have consistently hiked their estimates for the chipmaker’s earnings and profits over the past quarter.

Talking about the impact of AI, Ainina said, “The implication of AI is extraordinarily large, and these big tech companies are investing hundreds of billions into it, with Nvidia benefiting the most. Overall there continues to be a good picture for its prospects.”