Nvidia's latest gains reflect the U.S. stock market's return to the "AI trade" that fueled massive gains in chip stocks and related tech companies.

Loop Capital analyst Ananda Baruah on Wednesday raised his price target on Nvidia shares to $250, the highest of Wall Street analysts tracked by Yahoo Finance, implying that the AI chipmaker’s market capitalization could soar to $6 trillion. Baruah expects the market for AI chips to grow to $2 trillion in 2028.

Nvidia stock was rising again Thursday after it regained the crown as the world’s largest company by market value.A strong earnings report from Micron Technology—Nvidia’s key supplier of high-bandwidth memory chips—after the bell Wednesday was another good sign for the artificial-intelligence trade.