For traders worried about paying too much for Nvidia, a cash-secured put is an attractive way to buy shares for a discount.

Nvidia (NASDAQ:NVDA) stock keeps passing milestone after milestone. After surging past the $4 trillion market cap mark, some analysts are rushing to increase their year-ahead price targets. On the high end,

Nvidia's recent jump isn't surprising, as the stock's dip earlier in the year didn't seem justified considering the outstanding growth it has been consistently clocking on account of the terrific demand for its artificial intelligence (AI) chips.

Nvidia said it has filed applications to resume selling H20 GPUs in China and has received assurances that licenses will be granted.

Alibaba stock rallied back above its 50-day moving average following news Nvidia can sell some AI chips in China.

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.

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Nvidia took a $4.5 billion write-off in its latest quarter on unsold H20 chips that it was unable to repurpose for other markets. If sales of these high-volume chips to China resume, a reversal of this write-off could boost earnings.

Financial analysts point out that this valuation does not fully reflect Nvidia’s dominant position in the AI chip market, where it holds approximately 80% market share for training AI models. The company’s H100 and upcoming H200 chips remain in high demand with major cloud providers and AI developers.

Nvidia is known as the star of the artificial intelligence (AI) market, with its earnings and stock price flying high. Nvidia (NASDAQ: NVDA) has proven itself to be the bellwether of the artificial intelligence (AI) industry.