Nvidia’s market value is approaching $6 trillion as investors continue to pour money into companies expected to benefit from the artificial-intelligence boom.

The chipmaker’s shares rose again today after reaching a new record high on Monday.

Nvidia has become one of the most important companies in the AI industry because its processors are widely used in data centers that train and operate advanced AI systems.
Demand from technology companies has encouraged Nvidia to increase production and develop new generations of AI chips.

The company’s latest rise comes as investors prepare for the third-quarter earnings season.

Analysts expect strong earnings growth from major technology companies, with AI infrastructure investment expected to account for a significant portion of that growth.

However, the AI boom is also creating new challenges. Data centers require huge amounts of electricity, and shortages in available power capacity could delay some AI projects.

Morgan Stanley has said Nvidia and Broadcom are relatively protected from the current U.S. data-center power constraints, although delays could affect other parts of the chip supply chain.

Nvidia’s valuation therefore reflects both the enormous demand for AI computing and the expectations investors have placed on the company.

The chipmaker remains a central player in the competition to build the infrastructure powering the next generation of artificial intelligence.

Sources: Reuters.