As demand for artificial intelligence (AI) chips sharply rises, Nvidia (NASDAQ: NVDA) has become the highest-valued publicly traded company in the United States. Its stock price rose by 3.51% to $135.58, pushing its market capitalization to $3.335 trillion, surpassing Microsoft's $3.317 trillion. This marks the first time since February 2019 that a company has exceeded Microsoft or Apple to become the largest by market capitalization.

Nvidia's AI chips play a crucial role in the AI boom, serving as core tools for building advanced AI systems capable of processing complex text, image, and audio data. Nvidia CEO Jensen Huang stated that the company is advancing the construction of "AI factories" to convert data into intelligence.

In the year 2000, during the Internet boom, networking company Cisco (NASDAQ: CSCO) briefly surpassed Microsoft. Former Cisco CEO John Chambers noted that the market opportunities of the AI revolution are comparable to those of the Internet and cloud computing, despite differences in the pace of transformation and market size.

Nvidia's AI chips are integral across applications from smartphones and chatbots to autonomous vehicles, primarily manufactured by Taiwan Semiconductor Manufacturing Company (NASDAQ: TSM). Amid escalating US concerns over potential Chinese aggression towards Taiwan, efforts are intensifying to secure supply chain stability. Despite challenges from competitors and regulatory scrutiny, Nvidia and Jensen Huang appear confident about the future.

Driven by increasing demand from AI technologies, Nvidia's revenue continues to soar, reaching $26 billion in the latest quarter, more than triple that of the same period last year. Nvidia's stock was one of the top performers in the S&P 500 index in 2023, with its market value growing over threefold in the past 12 months. Despite surging AI investments, doubts remain in the market regarding its sustainable growth.

While the AI market presents immense opportunities, investors must remain wary of potential risks. Despite Nvidia commanding over 80% of the AI chip market, intensifying competition and regulatory reviews underscore future challenges. Huang announced plans to launch a new generation of AI chips in 2026, signaling the company's long-term commitment to technological innovation.