Nvidia became the first publicly traded company to reach a market cap of $4 trillion last week, as investors remain bullish on artificial intelligence technology.

Separately, stock in Dutch chip company ASML was falling sharply Wednesday after the company cut its outlook, blaming trade wars and tariffs for lower demand.

The stock is worth $4 trillion for a good reason. Nvidia's dominance in AI chips allows it to earn very high margins. Nvidia made $77 billion in net income on $148 billion of revenue over the last year, and its net income has increased 892% over the last three years.

One analyst boosted his price target on Nvidia’s stock to a level that would imply a $5.7 trillion market cap, with the chip maker seemingly cleared to sell its H20 chip in China again.

Another big inflation report is due before the open, along with earnings from chip-gear giant ASML and Goldman Sachs.

Technology stock valuations are hovering near all-time highs, but some value plays are hiding in the background.

The AI revolution is being driven in no small part by Nvidia, which Huang heads. The company’s chips power some of the world’s most advanced AI models, such as the ones underpinning ChatGPT and other large language models. But Huang insists that such technology should empower, not replace, humans.