On Tuesday, Nvidia Corp. surpassed Apple Inc. to become the largest business in the world, demonstrating the extent to which artificial intelligence has taken over Wall Street.

With shares up 2.9% to $139.93, the company's market capitalization reached $3.43 trillion, surpassing Apple's $3.38 trillion.

The market value of Microsoft Corp., which Nvidia overtook last month, is $3.06 trillion. Since the end of 2022, Nvidia's stock has increased by over 850 percent.

According to Fall Ainina, director of research at James Investment Research, "it has felt like people basically care about inflation numbers, job numbers, and Nvidia numbers over the past several quarters." "The fact that Nvidia has surpassed Apple in market capitalization not only indicates that it has benefited the most from the AI infrastructure cycle, but it also implies that people anticipate the AI boom will continue."

About 25% of the benchmark's 21% gain this year may be attributed to the chipmaker, which makes up 7% of the S&P 500 Index's weight. Although it only held the title for a day, Nvidia had previously closed with the title of largest corporation in June.

The largest Wall Street firms are all strongly involved in artificial intelligence: Microsoft, Amazon.com Inc., Alphabet Inc., and Apple with their cloud operations and AI services; Meta Platforms Inc. with its AI features and ad targeting; and Apple with its recently released AI iPhones.

With the exception of Apple, all of these corporations are among Nvidia's major clients, and they have stated their commitment to continuing to invest in artificial intelligence.

Not only are the largest firms by market capitalization AI plays, but so are the best-performing stocks of the year. Nvidia's 183% increase is the third-largest in the S&P 500 this year, trailing only Vistra Corp., a power producer that has experienced an increase in demand for AI, and Palantir Technologies Inc., a data-analysis software company.

Recent strength came as the business addressed investor concerns regarding the Blackwell chip, which was delayed owing to engineering challenges, as well as its long-term growth potential.

According to Bloomberg data, analysts predict Nvidia's sales to more than double this fiscal year and increase by 44% the next year. Over the last quarter, Wall Street analysts have boosted their predictions for Nvidia's earnings and profit.

Beyond Blackwell's optimism, recent sales from Taiwan Semiconductor Manufacturing Co. demonstrated robust AI demand, while OpenAI's fundraising round resulted in a $157 billion valuation. OpenAI recently produced an AI model with reasoning capabilities, which Alphabet Inc. is also working on.

"The implication of AI is extraordinarily large, and these big tech companies are investing hundreds of billions into it, with Nvidia benefiting the most," Ainina, who runs James Investments, said. "Overall there continues to be a good picture for its prospects."