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.

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.