Nvidia's shares rallied around 6 per cent to hit a record high on Tuesday, leaving the AI chipmaker's stock market value about $100 billion away from overtaking Apple in a major reshuffle of Wall street's biggest players.

Last trading at $1,128, Nvidia's market capitalisation reached $2.8 trillion, compared to a market value of $2.9 trillion for Apple, which is Wall Street's second-most valuable company after Microsoft.

Its stock surged as much as 8 per cent to $1,149.39 during the session, an intra-day record high. Apple's stock was down 0.2 per cent in afternoon trading.

Nvidia's shares have surged nearly 13 per cent since it forecast second-quarter revenue above Wall Street expectations last week and announced a stock split, which excited investors as they continue to bet on the AI poster child.

"The market has been struggling to keep up with the company's ever improving growth trajectory. At a mid-thirties forward earnings multiple, this still doesn't feel like bubble territory," said Derren Nathan, head of equity analysis at Hargreaves Lansdown.

Nvidia recently traded at 36 times its forward profit estimates, compared with 38 for Advanced Micro Devices and 21 for Intel, according to LSEG data.

The company's shares have more than doubled so far this year after more than tripling last year.

Nvidia, which has been one of the biggest beneficiaries of the AI boom, reported a five-fold jump in revenue at its data center segment last week as customers line up for their high-performance chips.

Alphabet, Microsoft, Amazon.com and other technology companies have been competing for a limited supply of Nvidia's high-end chips as they race to dominate AI computing.

"Business is doing incredibly well, there are so many opportunities to keep growing, and the AI theme still has legs.