Nvidia, long recognized in the gaming community for its graphics chips, has now become the most valuable public company in the world.

On Tuesday, Nvidia’s shares rose by 3.6%, pushing the company’s market cap to $3.34 trillion, surpassing Microsoft’s $3.32 trillion. Nvidia first hit the $3 trillion mark earlier this month, surpassing Apple in the process.

Nvidia’s shares have surged more than 170% this year, gaining momentum after the company reported strong first-quarter earnings in May. The stock has increased over ninefold since the end of 2022, coinciding with the rise of generative artificial intelligence.

On Tuesday, Apple shares dropped by 1.1%, resulting in a $3.29 trillion market value for the company.

Nvidia controls about 80% of the AI chip market for data centers, a sector that has expanded rapidly as companies like OpenAI, Microsoft, Alphabet, Amazon, and Meta scramble to acquire the processors necessary for building AI models and handling large workloads.

In the most recent quarter, Nvidia’s data center business saw a 427% increase in revenue compared to the previous year, reaching $22.6 billion and accounting for about 86% of the company’s total sales.

Founded in 1991, Nvidia spent its early decades primarily selling chips for gamers to run 3D titles. It has also ventured into cryptocurrency mining chips and cloud gaming subscriptions.

Over the past two years, Nvidia’s stock has skyrocketed as Wall Street recognized the company’s technology as crucial for the booming AI industry. This surge has boosted co-founder and CEO Jensen Huang’s net worth to about $117 billion, placing him as the 11th wealthiest person in the world, according to Forbes.

Microsoft shares have increased by about 20% this year. The software giant has also benefited from the AI boom, having taken a significant stake in OpenAI and integrated the startup’s AI models into its key products, including Office and Windows. Microsoft is one of the largest buyers of Nvidia’s graphics processing units (GPUs) for its Azure cloud service. The company recently released a new generation of laptops designed to run its AI models, called Copilot+.

Nvidia’s recent rise to the title of the most valuable U.S. company is notable. Apple and Microsoft have been trading the title for the past few years.

Despite its rapid ascent, Nvidia has not yet been added to the Dow Jones Industrial Average, a stock benchmark of 30 of the most valuable U.S. companies. Last month, Nvidia announced a 10-for-1 stock split, which went into effect on June 7. The split improves Nvidia’s chances of being added to the Dow, which is a price-weighted index, meaning companies with higher stock prices have more influence on the benchmark.