Nvidia's market capitalisation exceeds $3 trillion (£2.3 trillion), making the chipmaker the world's second-most valuable listed company, overtaking Apple.
The company's shares rose more than 5% on Wednesday to above $1,224.
The company's surprisingly fast stock price rally that began last year has been fueled by the belief that it is poised to be a big winner in a wave of investment in artificial intelligence.
The company's market capitalization now ranks second only to another major player in the industry, Microsoft, thanks to its investment in chat GPT maker OpenAI.
Nvidia, which had a market capitalization of “just” $2 trillion in February, sparked a new wave of share buying after announcing plans last month for a so-called stock split.
The move will increase the number of shares by tenfold and reduce their value accordingly, a change aimed at making shares more affordable for smaller investors.
is scheduled for Friday and is expected to further boost demand for the stock.
Founded in 1993, Nvidia was originally known as a company that made computer chips, particularly the type that processed graphics for computer games.
Long before the AI revolution, the company began adding features to its chips that it said would help with machine learning, all of which has helped the company grow its market share.
The company is now seen as a key company to watch in determining how quickly AI-powered technology spreads across the business world, with Shift President Jensen Huang declaring the start of “the next industrial revolution.”
The company has seen explosive growth, reporting sales of $26 billion for the three months ended April 28, more than triple its revenue for the same period in 2023 and up 18% over the previous three months.
Optimism about AI has been one of the drivers of the broad market rally last year, with the U.S. S&P 500 and Nasdaq hitting record highs on Wednesday.
Earlier this year, Apple appeared to be in trouble as sales growth slowed.
But in recent weeks, the company's shares have risen on excitement about how it plans to incorporate AI into its strategy.
The company's shares rose 0.7%, giving it a market capitalization of roughly $3 trillion, which is typically calculated by multiplying a company's number of shares by its current stock price.