Nvidia is on the brink of becoming the world's second-most-valuable company, trailing just behind Apple, fueled by the AI-driven surge in its shares. This remarkable rally has propelled Nvidia's market value from $1 trillion to over $2 trillion in merely nine months, surpassing major players like Amazon, Alphabet, and Saudi Aramco. With a current market capitalization of around $2.38 trillion, Nvidia is approximately $230 billion behind Apple and about $645 billion from Microsoft. Dominating 80% of the high-end AI chip market, Nvidia's ascent has significantly impacted Wall Street, contributing to record levels this year and granting it substantial weight in the S&P 500 index.

This surge in Nvidia, which has seen a 95% increase, along with Meta Platforms' 46.6% rise, underscores the growing investor interest in AI technologies. Richard Meckler of Cherry Lane Investments highlighted Nvidia's solid fundamentals and speculative appeal, driving its upward trajectory throughout 2024. Meanwhile, Apple has seen a slowdown in iPhone sales, resulting in it losing the top spot to Microsoft for the first time since 2021.

Nvidia has also overtaken Tesla as Wall Street's most actively traded stock by value. Despite its phenomenal growth, Nvidia's price-to-earnings ratio remains reasonable compared to its earlier valuations and other industry players, signaling it as one of the more affordable "AI narrative" stocks, according to David Wagner of Aptus Capital Advisors. However, there's caution around Nvidia's stock potentially nearing its peak, with Wall Street's median target price suggesting a future trading value below its current price. Yet, if Nvidia continues to meet or exceed high expectations, its stock price could sustain these levels, notes Meckler.