Key Points Nvidia is known as the star of the artificial intelligence (AI) market, with its earnings and stock price flying high.However, another, much smaller AI company has offered investors a lot more growth in recent times.

Nvidia stock continues to soar as analysts raise targets to $250 on AI chip demand. Can the rally hold, or is NVDA getting ahead of itself?

The Dow Jones index dropped Thursday ahead of jobless claims and retail sales. Nvidia chipmaker TSMC jumped on earnings.

The stock is worth $4 trillion for a good reason. Nvidia's dominance in AI chips allows it to earn very high margins. Nvidia made $77 billion in net income on $148 billion of revenue over the last year, and its net income has increased 892% over the last three years.

Currently, Nvidia accounts for nearly 8 percent of the S&P 500. That’s the highest weighting for a single stock in 45 years, according to Todd Sohn, senior ETF strategist at Strategas Securities. For context, industrials account for 8.7 percent of the index, while healthcare stands at 9.1 percent.

Nvidia's stock market value ended the trading session above $4 trillion, solidifying the chipmaker's position as Wall Street's central player in a race to dominate AI technology.

Nvidia's shares have climbed back to all-time highs as investors regain optimism in its AI infrastructure business. Generative AI will change the world. With shares up more than 50% since the start of April,

Tech led US stocks on Tuesday as a key consumer inflation print showed inflation accelerated in June, big banks kicked off earnings season, and Nvidia was set to receive a green light for trade with China from the Trump administration.