Both the S&P 500 and the Nasdaq hit record closes on Wednesday as the chip-making giant Nvidia broke the $3 trillion valuation mark, overtaking Apple and becoming the second most valuable public company in the US behind Microsoft.

The meteoric rise of Nvidia is driven by aritificial intelligence boom as investors bet big on its ability to provide the nuts and bolts behind this latest tech.

So to gauge just how far and how fast they've come, it's worth looking at where the share price was at the start of this year.

And as you can see, it was under $500 a share.

On Wednesday, it closed at over $1,200 a share.

So that's just the rise this year.

It actually went up 5% in value on Wednesday alone, giving the market cap of just over $3 trillion, a mind-boggling sum.

Let's hear more from our North America business correspondent Erin Delmore.

Wall Street's on a record-breaking run.

The latest?

All-time high closes for the S&P 500 and the Nasdaq, the latter powered by, you guessed it, Nvidia.

The chip-maker joined the $3 trillion club on Wednesday, overtaking Apple as the world's second most valuable company.

Microsoft is still the world's number one.

Nvidia is only the third company to ever exceed $3 trillion in market value.

It's leading in the race to develop the chips needed to enable new artificial intelligence applications.

And that's where the other tech giants, and a lot of companies, are spending big bucks right now.

Nvidia shares ended the trading day up more than 5%.

Alphabet, Amazon, Apple, Meta and Microsoft all ended the day up as well.

The major indexes have been hitting high watermarks over and over in 2024.

This marks the Nasdaq's 13th record close this year and the 25th for the S&P.

And for more on the rise and rise of Nvidia, I talked to market analyst Anna MacDonald.

Nothing comes close to Nvidia's dominance when you start thinking about artificial intelligence.

Jensen Huang, the CEO, has talked about it being the next industrial revolution.

And I think it's just astonishing, isn't it?

We've had Microsoft and Apple such as stalwarts of the equity markets.

And then Nvidia seems to have come out of nowhere over the last few years, having been a computer gaming chip company.

And now here it is just delivering huge revenue increases and becoming more profitable while it's doing it.

So, it's actually, it's been an astonishing ascent.

Are you concerned, Anna, when it comes to AI that we've got a bubble going to burst on markets at some point?

Any kind of massive rise in share prices is going to lead to that.

But I suppose I would say that Nvidia is actually selling these chips.

This is not sort of, not some kind of story that's being pushed out further and further and some kind of promise for the future.

They are actually delivering revenue and profit growth.