The blistering stock rally that’s made Nvidia Corp. one of the world’s three most valuable companies is based on a number of assumptions. One is that artificial intelligence applications made possible by its semiconductors will become features of the modern economy.

Large cloud-computing customers are continuing to spend heavily as they prepare to shift in 2025 to Nvidia’s next generation of GB200 liquid-cooled rack systems.

The semiconductor space has been an important driver for the stock market, helped especially by Nvidia Corp.’s dramatic sales growth — the company’s most recent quarterly revenue was 4.5 times as high as it was two years earlier.

Large cloud-computing customers are continuing to spend heavily as they prepare to shift in 2025 to Nvidia’s next generation of GB200 liquid-cooled rack systems.

Key Takeaways Nvidia shares slipped Monday, giving up some of last week's gains as the stock's bout of volatility continued.The stock hit a record high in mid-June but has since been on a rollercoaster ride as investors have tempered their AI optimism and embraced rate-sensitive stocks.