• NVIDIA shares climbed another 3% in Monday trading, extending a multi-day rally.
  • The gain reflects unabated investor optimism around the company's dominance in AI hardware.
  • Despite ongoing concerns about China restrictions and valuation, demand for AI chips remains robust.

NVIDIA Corp. continued its upward trajectory, with shares rising 3% in midday trading as investor confidence in the artificial intelligence boom shows no signs of weakening. The chipmaker, which briefly surpassed a $3 trillion market cap earlier this year, has now seen its stock surge more than 1,100% since 2023.

The momentum stems from what analysts describe as "unprecedented demand" for NVIDIA's data center GPUs, particularly the H100 and upcoming Blackwell series. With the company controlling roughly 80% of the global AI accelerator market, it remains indispensable to cloud computing giants like Microsoft, Amazon, and Google, all of which are racing to expand their AI infrastructure.

According to people familiar with the matter, order volumes for NVIDIA's next-generation chips continue to outstrip supply, creating a backlog that stretches into 2026. "The pipeline is stronger than anyone anticipated," said one source, who requested anonymity because the information isn't public. "Every major cloud provider is scrambling for allocation."

NVIDIA's fiscal 2025 revenues are projected to exceed $100 billion, primarily driven by data center AI chips. The company also reported a 29% year-over-year increase in its non-AI datacenter businesses, including networking and gaming segments, suggesting broader strength beyond the AI frenzy.

Still, the rapid ascent hasn't been without turbulence. Earlier this year, the stock experienced brief pullbacks amid concerns about U.S. restrictions on chip sales to China and questions about the sustainability of AI capital spending. Some market commentators, including Jim Cramer, have warned about potential "speculative excess" in the AI sector.

NVIDIA declined to comment on the day's trading activity. The company has previously emphasized its focus on developing compliant products for the Chinese market while continuing to innovate for global customers.

With analysts projecting total revenues could surpass $270 billion by 2026, and market research predicting AI accelerator spending could approach $330 billion around the same time, NVIDIA's position at the center of the technological transformation appears secure for the foreseeable future. The question for many investors isn't whether the AI wave will continue, but how long NVIDIA can maintain its commanding market share as competitors like AMD and Intel work to close the gap.