Nvidia Corporation reclaimed its position as the world's most valuable publicly traded company on Tuesday, surpassing Microsoft after a sharp rally driven by unrelenting demand for its AI chips. The stock rose 2.80% to close at $141.22, pushing its market capitalisation to $3.445 trillion, marginally ahead of Microsoft’s $3.441 trillion.

The chipmaker’s meteoric rise is driven by its dominance in the AI sector, with its high-performance GPUs powering applications from generative AI models to data centres for tech giants like OpenAI, Meta,

Nvidia has overtaken Microsoft as the largest U.S. company by market value, regaining the throne that it forfeited during the AI-stock selloff in late January. Nvidia shares rose 2.9% during Tuesday’s trading.