Nvidia is rapidly approaching Apple in market value, positioning itself as the world's second-most-valuable company, driven by a remarkable surge in its shares over the past nine months, elevating its valuation from$1 trillion to over$2 trillion.

Currently trailing Apple by approximately$230 billion and Microsoft by about$645 billion, Nvidia's market capitalisation is around$2.38 trillion. The semiconductor giant's dominance in the high-end AI chip market, controlling 80%, has fueled its substantial growth, contributing to Wall Street reaching record highs this year. The relentless rally in Nvidia shares, up 95%, underscores investors' insatiable appetite for AI-related stocks, making it a significant component of the S&P 500 index.

According to industry experts, the robust fundamentals of Nvidia's current business model and speculative support from long option buyers have driven its impressive rally. In recent weeks, this surge has also propelled Nvidia to replace Tesla as the most traded stock by value on Wall Street.

While Apple grapples with slowing iPhone sales, Nvidia's ascent has reshaped the hierarchy of the most valuable US companies, surpassing Amazon, Alphabet, and Saudi Aramco. Despite its extraordinary performance, there are indications that Nvidia's stock may be approaching a peak, with analysts suggesting a median target price implying a potential dip from the current closing price of$926 to$850 over the next 12 months. However, analysts note that Nvidia remains comparatively affordable among 'AI narrative' stocks, and its future trajectory depends on its ability to meet or exceed high expectations.