As investors continue to bet on the artificial intelligence craze, Nvidia stocks (NVDA) are expected to hit a historic high, positioning the chip manufacturer to become the top value company on Wall Street.

In early trading on Monday (October 14th), the stock price rose by over 3% to above $138. Nvidia previously set a closing price record of $135.58 in June.

Nvidia's stock price saw a significant increase in October, rising for six consecutive days at one point.

The stock's ascent began on October 2nd when ChatGPT manufacturer OpenAI announced a $6.6 billion large-scale financing round. Due to OpenAI's growing energy needs requiring more AI chips, most of the funds are expected to flow back to Nvidia.

Nvidia's stock price continued to rise, fueled by a series of positive news for the AI chip manufacturer. Wall Street analysts reiterated their buy rating on Nvidia last week. KeyBanc released a report estimating that Nvidia's revenue from just the new Blackwell chips would reach $7 billion in the fourth quarter, with 'very strong' demand for its older GPUs. Wedbush analysts mentioned that the new round of funding startups in AI may also increase Nvidia's funds.

Nvidia showcased the strength of its software products at an AI summit in Washington, D.C. On the same day, Nvidia and Foxconn announced plans to build a supercomputer at Foxconn's annual tech exhibition. Foxconn also detailed a large factory in Mexico assembling Nvidia servers using the Grace Blackwell chips, aiming to reduce Nvidia's dependence on other countries amidst escalating trade tensions.

Nvidia's Monday surge brings it closer to surpassing Apple as the world's most valuable company. In early trading on Monday, the chip manufacturer's market cap was $3.4 trillion, while Apple's market cap was $3.5 trillion. Over the past year, Apple, Microsoft, and Nvidia have alternated in the top three positions.

Nvidia's rise has reversed the early decline following the company's second-quarter earnings release.

At the end of August, due to Nvidia's failure to exceed analyst expectations as investors hoped, the stock price fell. Bloomberg reported that the company received a subpoena from the US Department of Justice in early September, but Nvidia denied the subpoena, causing its stock price to further decline. Concerns about interrupted demand from China due to escalating trade tensions with the USA also contributed to the stock price drop. Nvidia's recent volatility has been exacerbated by the 10-for-1 stock split in June.

Other recent bullish news in the semiconductor industry may help Nvidia's upward trend. One of Nvidia's chip manufacturers, Taiwan Semiconductor (TSM), reported sales higher than Wall Street's expectations, once again indicating that there will be strong demand for artificial intelligence in the short term.

"Artificial intelligence is very popular," Patrick Moorhead, CEO of Moor Insights and Strategy, told Yahoo Finance, adding, "I believe that AI datacenter trades will continue to grow over the next 12 months."

Despite Wall Street's worries about an economic slowdown, the growth in the chip industry indicates that major technology companies' large-scale spending on artificial intelligence hardware is far from over.

According to the latest WSTS data reviewed by JPMorgan, semiconductor industry sales in August increased by 28% compared to the same period last year, an increase of 15% from July. Terry Gou, Chairman of Foxconn (2354.TW), Nvidia's server manufacturer, said in an interview with Bloomberg TV that the company is increasing production capacity to meet the "crazy" demand for Nvidia AI chips or GPUs (Graphics Processing Units). Nvidia's CEO, Jensen Huang, said in a CNBC interview last week that the demand for Nvidia's latest Blackwell chip is "crazy."

Nvidia will announce its performance on November 19. Based on Bloomberg's general expectations, Wall Street analysts predict that the company's revenue will reach $33 billion, an 82% increase from the previous year. Of the Wall Street analysts tracked by Bloomberg, about 90% recommend buying Nvidia stocks.