washington (TIP)- Nvidia NVDA.O was on track to become the most valuable company in history on Thursday, July 3, with the chipmaker’s market capitalisation reaching $3.92 trillion as Wall Street doubled down on optimism about AI.

Shares of the leading designer of high-end AI chips were up 2.2 per cent at $160.6 in morning trading, giving the company a higher market capitalisation than Apple‘s AAPL.O record closing value of $3.915 trillion on December 26, 2024.

Nvidia’s newest chips have made gains in training the largest artificial-intelligence models, fuelling demand for products by the Santa Clara, California, company. Microsoft MSFT.O is currently the second-most valuable company on Wall Street, with a market capitalisation of $3.7 trillion as its shares rose 1.5 per cent to $498.5.

Apple rose 0.8 per cent, giving it a market value of $3.19 trillion, in third place.

A race among Microsoft, Amazon.com AMZN.O, Meta Platforms META.O, Alphabet GOOGL.O and Tesla TSLA.O to build AI data centres and dominate the emerging technology has fuelled insatiable demand for Nvidia’s high-end processors.

“When the first company crossed a trillion dollars, it was amazing. And now you’re talking four trillion, which is just incredible. It tells you that there’s this huge rush with AI spending and everybody’s chasing it right now,” said Joe Saluzzi, co-manager of trading at Themis Trading.

The stock market value of Nvidia, whose core technology was developed to power video games, has increased nearly eight-fold over the past four years, from $500 billion in 2021.

Nvidia is now worth more than the combined value of the Canadian and Mexican stock markets, according to LSEG data. The tech company also exceeds the total value of all publicly listed companies in the United Kingdom.

Nvidia recently traded at about 32 times analysts’ expected earnings for the next 12 months, below its average of about 41 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia’s sizeable stock gains.

The company’s stock has now rebounded more than 68 per cent from its recent closing low on April 4, when Wall Street was reeling from President Donald Trump‘s global tariff announcements. US stocks, including Nvidia, have recovered on expectations that the White House will cement trade deals to soften Trump’s tariffs.