Nvidia, the leading AI chipmaker, is on the verge of surpassing Apple to become the world's most valuable company. On Monday, Nvidia's shares closed at a record high, pushing its market value to $3.4 trillion, just shy of Apple's $3.5 trillion. This surge is fueled by investor confidence in Nvidia's next-generation AI processors, particularly the Blackwell chips, which have seen overwhelming demand.

Nvidia's rise is part of a broader trend where major tech companies like Microsoft, Alphabet, and Amazon are heavily investing in AI technology. Nvidia's dominance in the AI hardware market, controlling about 95% of the market for AI training and inference chips, has been a significant factor in its growth. The company's stock has increased nearly 180% this year, reflecting the booming demand for AI solutions.

The competition among tech giants has intensified, with Nvidia, Apple, and Microsoft frequently trading places in terms of market capitalization. Analysts are optimistic about Nvidia's future, with expectations of continued revenue growth, driven by the rollout of its Blackwell chips and the expansion of AI data centers.

Despite the optimism, there are concerns about the sustainability of this growth, particularly if there is a slowdown in AI spending. However, Nvidia's strategic partnerships, such as its collaboration with Foxconn to build a supercomputer in Taiwan, and its expansion into new markets, are expected to bolster its position.

As Nvidia prepares for its next earnings report, investors are keenly watching to see if the company can maintain its momentum and potentially dethrone Apple as the most valuable company in the world.