Shares of the leading chip designer rose as much as 2.8% to an all-time high of $164.42, benefiting from an ongoing surge in demand for artificial-intelligence (AI) technologies.

The company's stock ended with a gain of 1.80%, leaving it with a market value of $3.97 trillion.

Nvidia's soaring market value underscores Wall Street's confidence in the rapid growth of AI, with the company's high-performance chips forming the backbone of this technological advance.

"It highlights the fact that companies are shifting their asset spend in the direction of AI and it's pretty much the future of technology," said Robert Pavlik, Senior Portfolio Manager at Dakota Wealth in New York.

The stock's recent rally follows a sluggish start to the year, when the emergence of a Chinese discount AI model developed by DeepSeek shook confidence in stocks linked to the sector.

--Reuters--