The problem was simple. While Apple had fallen two years behind the rest of the world on developing AI and was releasing iPhones which were the same as last year’s model, Nvidia was coining it in with its specialised artificial intelligence chips.

 According to LSEG data, Nvidia's stock market value briefly hit $3.53 trillion, slightly surpassing Apple's $3.52 trillion.

In June, Nvidia briefly held the top spot before Microsoft and Apple reclaimed it. For months, the market capitalisations of these tech giants have been neck-and-neck. On Friday, Microsoft's market value stood at $3.18 trillion, with its stock up 0.8 per cent.

Nvidia's shares reached a record high on Tuesday, continuing a rally from the previous week when TSMC, the world's largest contract chipmaker, reported a 54 per cent jump in quarterly profit driven by soaring demand for AI chips.

According to Apple’s unofficial press office The New York Times, Intel once considered acquiring Nvidia for up to $20 billion in 2005. This move could have drastically reshaped the AI industry.

CEO Paul Otellini had pitched the acquisition to Intel's board, recognising the potential of graphics processors for data centre computing. However, the board rejected the proposal due to Intel's poor track record with acquisitions and the deal's unprecedented size.

Today, Nvidia dominates the AI chip market with a $3 trillion valuation, while Intel faces declining revenue and recent layoffs of 16,000 workers.