Nvidia's $20.11 Billion Trading Day Secures Second Spot in Market as AI Chip Demand Surges

On June 18, 2025, Nvidia's trading volume reached $20.11 billion, making it the second-highest in the day's market. The stock price of Nvidia (NVDA) increased by 0.94%.

Nvidia's stock has been on a remarkable trajectory, driven by the surging demand for artificial intelligence (AI) chips. Analysts have been raising their price targets, with some predicting that the company could grow into a $5 trillion entity. This optimism is fueled by Nvidia's dominance in the AI accelerator market, where it holds over 80% of the share. The company's high-performance GPUs, such as the H100 and the upcoming Blackwell chips, are key drivers of this growth.

Nvidia's data center revenue has seen a significant boost, jumping 427% year-over-year in the most recent quarter. This surge is attributed to the increasing demand from cloud services and AI model training. The company's expanding use cases, ranging from generative AI and robotics to autonomous vehicles and medical imaging, further solidify its position as a leader in the tech industry.

Nvidia's financial performance has been equally impressive, with quarterly profits surpassing $14 billion. The company now generates more free cash flow than Amazon, highlighting its strong financial health. Additionally, Nvidia's control over its supply chain, through partnerships with TSMC and its CUDA ecosystem, provides it with long-term pricing power.

Despite the bullish outlook, there are potential risks to consider. Nvidia's valuation is currently at a lofty forward P/E ratio of over 40x earnings, which could be a concern for some investors. Geopolitical tensions between the U.S. and China could impact supply chains and export licenses for Nvidia's advanced chips. Competition from AMD and Intel is also a factor, although they are currently lagging behind in execution.

If Nvidia continues to maintain its momentum in the AI space and executes flawlessly on supply and demand, reaching a $5 trillion market cap is not out of reach. This would require the company to double from its current valuation of approximately $2.9 trillion, but with record-breaking earnings and a first-mover advantage in AI, many believe it is only a matter of time before Nvidia achieves this milestone. As AI continues to transform various sectors, Nvidia is well-positioned to lead the next wave of the digital revolution.