Nvidia Corp. shares rose to an all-time high on Wednesday, with the leader in artificial intelligence chips extending an advance that has cemented its position as one of the most valuable companies in the world.

The stock closed Wednesday at $154.31, up $6.41, or 4.33%. The record is only the latest milestone for the company, which has risen 63% off an April low, a rally that has added more than $1.4 trillion to its market capitalization.

Recent earnings results from Nvidia were the latest catalyst for bulls, as the report showed robust growth and pointed to more strength ahead despite the impact of restrictions on the sales of advanced semiconductors in China. Prints from Microsoft Corp., Meta Platforms Inc., Alphabet Inc., and Amazon.com Inc. — which together make up more than 40% of Nvidia’s revenue, per supply chain data compiled by Bloomberg — further underlined how the company’s biggest customers continue to spend aggressively building out their AI infrastructure.

“My confidence in Nvidia’s growth is higher than it was a couple months ago, and it seems the AI arms race will continue through 2025 and probably 2026,” said Michael Smith, co-portfolio manager at Allspring Global Investments. “The momentum has clearly been re-established, and Nvidia’s moat has only widened and deepened, meaning its position has only strengthened.”

At Nvidia’s shareholder meeting Wednesday, Chief Executive Officer Jensen Huang reassured investors that demand remains strong. He reiterated his view that the computer industry is only at the beginning of a massive AI infrastructure upgrade.

Little known just a few years ago, Nvidia has emerged as a household name and perhaps the most important stock on Wall Street by becoming the poster child for all things AI. The shares’ gain of more than 14% this year follow a rally of more than 170% in 2024, which itself came in the wake of 2023’s surge of nearly 240%.

Even with this strength, it continues to screen as attractive next to its history by some valuation metrics. Nvidia trades at 31 times expected 12-month earnings, below its 10-year average and not far from the Nasdaq 100 Index’s multiple of 27 — despite Wall Street estimates calling for faster growth at Nvidia than the broader tech market. The stock’s PEG ratio — a measure of valuation relative to growth — is at about 0.9, by far the lowest among the Magnificent Seven.

The combination of high growth and a reasonable multiple is a key reason why Wall Street remains optimistic about its prospects. Nearly 90% of the analysts tracked by Bloomberg recommend buying the stock, while it trades 13% below the average analyst price target, suggesting many expect the momentum to continue.

Despite all that, Nvidia remains under-owned by market professionals relative to other Big Tech peers, an additional sign there is potential for more buying in the weeks to come. Nvidia is owned by 74% of long-only funds, according to data from Bank of America. This puts it behind Amazon, Apple and Microsoft, which is the most owned at 91%.

“I’m bullish on this year and next, but like everyone else we don’t know what will happen after that,” said Smith. “The stock doesn’t look expensive, but there can be a limit to how much upside there is in one of the biggest companies in the world. Ultimately the duration of Nvidia’s growth will depend on how long its customers increase their investments in AI. If they slow their spending, it won’t take much to see a big shift in volatility.”