In yet another validation of its position as a Wall Street favorite, Nvidia, the chipmaker known for its AI technology, has overtaken Google's parent company, Alphabet, in terms of market capitalization. This comes as a result of the skyrocketing demand for Nvidia's AI chips, which have propelled the company to become the third-largest U.S. company, trailing only Apple and Microsoft.

On Wednesday, Nvidia's shares rose over 2% to close at $739.00 per share, giving the company a market value of $1.83 trillion, overtaking Google's market cap of $1.82 trillion. It is worth noting that just a day prior, Nvidia had surpassed Amazon in terms of market value, further solidifying its dominance in the AI-driven market.

Nvidia's remarkable rise in market capitalization serves as proof that the company's AI chip sales have made it a darling on Wall Street, surpassing even some of the big software companies and cloud providers that have contributed significantly to the development and integration of AI techniques.

Over the past 12 months, Nvidia's shares have experienced an extraordinary surge of over 221%, primarily fueled by the robust demand for its AI server chips. These chips, which can cost more than $20,000 each, are essential for companies like Google and Amazon to power their cloud services, requiring thousands of them to meet their computational needs.

While Google had been widely expected to benefit greatly from the AI boom, with its employees at the forefront of pioneering AI techniques, Nvidia's exceptional performance has outshined even the tech giant. Google's shares have still seen a substantial increase of 55% over the past 12 months, albeit with its fair share of challenges, including layoffs and culture issues as it strives to incorporate AI into its products.

Notably, Google recently introduced its first paid generative AI product, an AI subscription called Gemini Advanced priced at $20 per month. Despite these efforts, Nvidia's dominance in the AI space has propelled it ahead in the market capitalization race.

Nvidia's next milestone will be closely watched when it reports its quarterly earnings on February 21st. Analysts anticipate a staggering 118% annual growth in sales, projected to reach $59.04 billion. As the AI boom continues to drive Nvidia's success, it remains a force to be reckoned with, firmly establishing its position as a powerhouse in the tech industry.