Nvidia (NASDAQ: NVDA) has been in red-hot form on the stock market in 2023. Shares of the semiconductor giant have more than tripled so far with eye-popping gains of 237%, which has taken its market cap well beyond the $1 trillion mark.

Nvidia currently has a market cap of $1.2 trillion, up from just over $350 billion at the beginning of the year. This massive surge is a result of the terrific acceleration in the company's growth recently thanks to its dominant position in the artificial intelligence (AI) market. Nvidia's chips are in hot demand thanks to their ability to train large language models, which have gained traction over the past year to deploy generative AI applications such as ChatGPT.

The good part is that the market for AI chips is currently in the early phases of growth. Market research firm Allied Market Research estimates that the global AI chip market could generate a roughly $384 billion in annual revenue in 2032, up from just $15 billion last year. This translates to a compound annual growth rate of 38% over the next decade.

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Source Fool.com