Nvidia has displaced Apple to become the world's second-most valuable corporation, driven by a significant rise in the demand for its shares, pushing its valuation past $3 trillion.

Nvidia's stock surged by 5.2% on Wednesday, closing at $1,224.40, which boosted its market capitalization to $3.012 trillion.

Microsoft, holding the title of the most valuable company in the world, saw an increase of 1.91%, whereas Apple rose by 0.78%.

Nvidia's impressive rally continues its exceptional growth streak. The California-based company's graphics processing units have been instrumental in the surge of artificial intelligence (AI) innovation.

Over the last year, Nvidia's revenues have skyrocketed by more than 260%, driven by tech giants like Microsoft, Meta, Google, and Amazon, all vying to advance their AI capabilities.

This year alone, Nvidia's stock has more than doubled in value, following a significant tripling in value in 2023.

Last month, Nvidia declared a 10-for-1 stock split to make its shares more accessible to employees and investors.

Scheduled for Friday, the stock split is expected to further attract small investors to the company.

Meanwhile, Apple, which was the first company to reach the $1 trillion and $2 trillion market cap milestones, is currently challenged by weak demand for its iPhones in China and lagging in AI adoption.

Apple's stock price has increased only by about 5% this year, trailing well behind the broader S&P 500 and the tech-heavy Nasdaq indices.