Wales moved to number two in the latest World Rugby rankings following their Six Nations title clinching victory over Ireland yesterday.
With the 25-7 drubbing in Cardiff, Gatland's side won their 14th straight test match to leapfrog Ireland in the rankings. Wales were as low as eighth in the rankings less than two years ago after finishing fifth in the Six Nations.
It equals Wales' highest position in the world rankings which were introduced in 2003. Wales last reached second spot during the last Rugby World Cup after stunning England during the pool play.
The All Blacks remain in number one spot, a position they have held since November 2009.
England remain in fourth after a 38-38 draw with Scotland at Twickenham.
Victory earned Wales its first Six Nations title since 2013, and its first Grand Slam since 2012. After seeing his wet-weather game plan executed brilliantly, coach Warren Gatland deflected all praise to his players and staff.
"They deserve it. This group of players will run through a brick wall for you," he said. "I get such a buzz out of watching those guys go up and collect trophies and celebrate."
Gatland finished his 10th and last Six Nations with Wales by winning a fourth championship, and as the first coach to win three Grand Slams in the tournament's 136-year history. He's stepping down after the Rugby World Cup later this year, when he hopes to collect the biggest trophy yet.
"We're in a good position," he said.