• Nvidia's stock hit a record high of $154.31, reclaiming status as the world's most valuable company.
• An analyst predicts a "Golden Wave" of AI adoption, boosting Nvidia's market value to approximately $3.77 trillion.
• The chipmaker's recent earnings show robust growth, indicating continued strength despite external challenges.

Nvidia's shares rose to an all-time high of $154.31 on Wednesday, enabling the chipmaker to reclaim its position as the world's most valuable company with a market cap of approximately $3.77 trillion, surpassing Microsoft, which is valued at $3.66 trillion. This increase, marking over a 63% gain from an April low, reflects optimism about a new phase in artificial intelligence adoption, termed a "Golden Wave" by analysts, including Loop Capital's Ananda Baruah, who predictive demand increase for Nvidia's AI chips. This surge in stock price is part of an overall trend where Nvidia continues to perform strongly in the tech sector, contributing to the S&P 500 technology index's recent gains, according to Channel News Asia and Reuters.

The recent rally in Nvidia's stock is bolstered by positive earnings reports showcasing strong growth, along with significant spending by major clients like Microsoft, Meta, and Alphabet on AI infrastructure. Analysts have noted that 90% among them are recommending Nvidia stocks, expressing confidence in the company's growth in the AI sector. CEO Jensen Huang highlighted at a shareholder meeting that the demand for AI technology is only beginning, emphasizing the potential for future expansion, as supported by findings from South China Morning Post and Reuters.

Despite these strong performance metrics, Nvidia's stock valuation remains attractive compared to its historical averages, trading at around 31.5 times expected earnings for the next 12 months. This is seen as a favorable outlook within the technology sector, paired with a low PEG ratio of 0.9. Analysts suggest that this combination of growth potential and reasonable valuation may indicate continued upward momentum, although there are concerns about future volatility should customer spending on AI slow down, as cited by South China Morning Post and Channel News Asia.