• Nvidia shares climbed 3% in Tuesday trading, extending a multi-day rally.
  • The gain builds on the stock's 5.2% advance over the past two weeks.
  • Technical analysis suggests potential for further upside as AI investment cycle accelerates.

Nvidia Corp. extended its recent rally with shares climbing 3% in Tuesday's session, pushing the chipmaker's market capitalization further above the $4 trillion mark as investor enthusiasm for artificial intelligence shows no signs of cooling.

The stock advanced to $181.85, marking its third consecutive day of gains and continuing a remarkable run that has seen the shares appreciate approximately 33% so far in 2025. This follows an extraordinary period from early 2023 through 2024 when Nvidia delivered over 800% returns to shareholders.

"The AI infrastructure build-out is still in its early innings, and Nvidia remains the clear beneficiary," said one portfolio manager who requested anonymity because they weren't authorized to speak publicly. "We're seeing sustained demand for their data center processors that continues to outstrip supply."

Nvidia's performance comes amid what analysts describe as a global "arms race" for AI hardware, with companies and governments accelerating spending on data centers and advanced computing power. Projections indicate the company could capture a significant portion of the estimated $3 trillion in global capital expenditure expected to flow into AI infrastructure through 2030.

While regulatory concerns persist, particularly around U.S. restrictions on advanced chip sales to China, these headwinds have done little to dampen investor sentiment in recent sessions. The company has managed to navigate export controls effectively thus far, according to people familiar with its strategy.

Technical analysts note that if the current momentum holds, Nvidia shares could see additional gains of up to 55% over the next three months. The stock's relative strength index, while elevated, hasn't yet reached levels that typically signal an imminent reversal.

Nvidia didn't immediately respond to requests for comment on the day's trading activity. The company, led by founder and CEO Jensen Huang, continues to dominate the market for GPUs used in both enterprise AI applications and consumer gaming.

Correction: An earlier version of this article misstated the stock's closing price. It was $181.85, not $181.75.