Nvidia, capitalising on the rapid adoption of AI applications, is poised to overtake Apple as the world's second-most valuable company. This potential shift threatens to displace Apple, which has dominated Wall Street's market value rankings for years.

The reliance of virtually all artificial intelligence applications such as OpenAI's ChatGPT on Nvidia's high-end chips has helped the stock nearly triple in value over the past year to $2.68 trillion.

In contrast, Apple ceded its No. 1 spot to Microsoft earlier this year as the once high-flying company grapples with weak demand for its iPhones and tough competition in China. It was last valued at $2.92 trillion.

"It is certainly notable because Apple has been so dominant for so long, especially on the growth and innovation front. Recently though, Apple's innovation curve seems to have flattened, showing slower future growth," said Brian Mulberry, client portfolio manager at Zacks Investment Management.

"On the other hand, Nvidia has been able to catch wave upon wave of growth. Beginning with gaming demand, then crypto and now AI, they have been able to perfectly match innovation with demand and that equals explosive growth."

The semiconductor company is heavily weighted on the S&P 500 and the Nasdaq and has been pivotal in driving U.S. stocks to record highs. It accounted for more than a third of the S&P 500's gains this year.

Nvidia also became the fastest company to grow from $1 trillion to $2 trillion in 2024, zooming past Amazon.com, Google-parent Alphabet, and Saudi Aramco.

Since its blowout forecast about a year ago, the company has consistently breezed past Wall Street's lofty expectations for revenue and profit, with demand for its graphic processors far outstripping supply as Big Tech rushes to embed AI applications.