While the long-term outlook for AI remains encouraging and this technology has real-world applications in most industries around the globe, Nvidia's chances of becoming Wall Street's first $5 trillion company are likely going to be thwarted by history.

Nvidia Corp.’s $3 trillion run-up in market value in the two years since ChatGPT helped trigger an AI frenzy is bigger than any stock rally in history in such a short time span. But the landscape is now changing for the chipmaker.

Nvidia (NVDA) has solidified its position as a leader in the technology industry, especially within the semiconductor space. No other semiconductor company has experienced growth as explosive as Nvidia’s.

Nvidia ( NVDA -3.00%) dominated much of the conversation among investors in 2024 as the stock marched 171% higher for the year. That was for good reason, as revenue and earnings exploded, with many big tech companies scrambling to acquire Nvidia's advanced chips for artificial intelligence (AI) data centers.

Since ChatGPT was introduced in late 2022, artificial intelligence has driven Nvidia (NASDAQ:NVDA) forward to 900% gains. It is now the second most valuable stock with a $3.34 trillion market capitalization.