Nvidia (NASDAQ:NVDA) retains its throne as the paramount semiconductor powerhouse globally, hurtling towards the position of the world’s most valuable company today. At the latest check, NVDA stock has risen by a further 1.6%, reaching a new pinnacle and boasting a colossal $3.24 trillion market capitalization.

This meteoric rise is astounding when reflecting on where this artificial intelligence (AI) titan stood just a few years back. Recent years have witnessed a seismic shift, a resurgence in chip stock allure entwined with relentless technological advancement.

Amidst the flourishing AI renaissance that cascades across markets, companies like Nvidia, purveyors of the high-performance chips essential for such applications, are basking in monumental valuation surges. Presently, whispers suggest an imminent ” $10 billion rush of demand” eddying towards NVDA stock, galvanized by a nexus of pivotal factors.

Embark with us on an odyssey through these factors and unravel why Nvidia’s ascent appears interminable at present.

NVDA Stock: Exponential Demand for This AI Giant

From a foundational vantage, Nvidia undeniably harbors some of the loftiest growth projections in the market realm. Throughout myriad quarters, the corporation has consistently surpassed revenue and earnings forecasts. Consequently, despite undergoing a staggering stock price appreciation over the past year, this stock is paradoxically more affordable today than it was twelve months prior.

Yet, beyond fundamental impetuses undergirding any rally, perceptive observers are highlighting a gamut of core factors that might unfurl a torrential $10 billion inflow into NVDA stock.

Primarily, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) is slated to recalibrate today, predicated on extant market capitalizations. In essence, owing to Nvidia’s stratospheric soar, a copious influx of capital may surge into the stock, dictated by the structure of these index funds.

Other preeminent mega-cap tech holdings have ascended, albeit nowhere near the meteoric rise witnessed in Nvidia’s trajectory. Consequently, this imminent recalibration bears significance and investors are already factoring in prodigious near-term elevation potential grounded solely on this facet.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.