Noted economist Mohamed El-Erian recently took to X, formerly Twitter, to acknowledge the extraordinary rise of Nvidia Corp. (NASDAQ:NVDA) as a technological powerhouse. He highlighted the company's journey from a little-known chipmaker to the world's most valuable company.

What Happened: On Tuesday, El-Erian shared his thoughts on the remarkable ascent of Nvidia. He referred to the company's success as an "amazing, and once unthinkable phenomenon" associated with a once-in-a-generation technological transformation.

Worth taking a moment to reflect on this:  
An amazing, and once unthinkable phenomenon associated with a once-in-a-generation multi-purpose technological transformation.@nvidia @markets #markets #investors #investing pic.twitter.com/lYDUDfEO1n

— Mohamed A. El-Erian (@elerianm) June 18, 2024

El-Erian's tweet was accompanied by a Bloomberg article detailing Nvidia's journey from its IPO in 1999 to its current status as the world's most valuable company, surpassing the likes of Microsoft Corp. (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL).

Why It Matters: Nvidia's rise to the top is largely attributed to its strategic focus on graphics chips and the vision of co-founder and CEO Jensen Huang. The company's chips have become the backbone of emerging technologies, from advanced graphics interfaces to autonomous vehicles to a new wave of AI products. Benzinga reported earlier that Nvidia's market cap climbed to $3.33 trillion, making it the most valuable public company in the world.

Furthermore, an investor pointed out that Nvidia's projected free cash flow over the next two years is expected to exceed that of Microsoft, indicating a bright future for the company.

While Apple recently unveiled its AI strategy, Nvidia's continued success in the AI sector has positioned it as a leader in the industry.

Price Action: On Tuesday, Nvidia shares closed 3.5% higher at $135.58 in the regular session and gained another 0.6% in the after-hours session, according to Benzinga Pro data.

This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal