Nvidia's Market Cap Surpasses $3.4 Trillion, Approaching Record Close as AI Chipmaker.

• Nvidia's chip sales reached a record high as the company continues to experience a surge in demand for its AI technology.
• Nvidia's graphics processing units are being bought in bulk by companies such as Microsoft, Meta, Google, and Amazon to construct massive computer clusters for AI purposes.
• Nvidia's value has surpassed $3.4 trillion, representing a nine-fold increase since the start of the previous year.

On Monday, the stock of shares is expected to reach a new record high as Wall Street prepares for earnings season and receives updates from the chipmaker's major clients regarding their planned investments in artificial intelligence infrastructure.

The stock price increased by 2.6% to $138.31 at approximately 1 p.m. Eastern time. Its highest close to date was $135.58 on June 18. The shares have risen almost 180% for the year and have increased more than nine-fold since the start of 2023.

Nvidia has profited the most from the generative AI boom, which began with the release of OpenAI's ChatGPT in November 2022. Nvidia's GPUs are utilized to develop and deploy advanced AI models that power ChatGPT and other similar applications.

Nvidia GPUs are being purchased in large quantities by companies such as , , , and to construct larger clusters of computers for their AI work. These companies are scheduled to release their quarterly results by the end of October.

Nvidia, which has a 95% market share for AI training and inference chips, is receiving a significant portion of the billions of dollars that top tech companies are spending annually on their AI buildouts, according to Mizuho analysts.

In the past five quarters, Nvidia's revenue has more than doubled, with at least a tripling in three of those periods. However, growth is expected to slow down modestly in the remaining quarters, with analysts projecting an expansion of about 82% to $32.9 billion in the quarter ending in October, according to LSEG.

Nvidia stated that the demand for its upcoming AI GPU, Blackwell, is "extreme" and anticipates generating billions of dollars in revenue from the product in the fourth quarter.

Nvidia, with a market cap of $3.4 trillion, is the second most valuable publicly traded U.S. company, surpassed only by Microsoft at approximately $3.53 trillion.

WATCH: Nvidia CEO Jensen Huang on Squawk Box