Shares of Nvidia (NASDAQ: NVDA) surged higher on Tuesday, jumping as much as 6.3%. As of 1:59 p.m. ET, the stock was still up 5.8%, taking it back above that psychologically important $3 trillion market cap.

The catalyst that sent the chipmaker and artificial intelligence (AI) specialist higher was word that the company was entering an important new market, which could boost future sales.

Nvidia's graphics processing units (GPUs) have become the gold standard and a key component in the rise of generative AI. These processors provide the computational horsepower necessary to speed the process of AI training and inference, which primarily occurs in data centers.

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Source Fool.com