Alphabet is developing and improving its competing AI product, the Tensor Processing Unit (TPU). It launched the sixth-generation TPU, Trillium, earlier this year. With five times more speed and 67% more energy efficiency, sixth-gen Trillium is a considerable leap over version five.

Strategic advisory firm Constellation Research gave Nvidia stock a $200 price target in June this year. The firm points out that the semiconductor bellwether enjoys several advantages that could send its shares to $200 in the coming year and even help it sustain its rally for a longer period.

Nvidia jumped after CEO Jensen Huang flagged strong demand for the company's chips, boosting its market value by more than $200 billion and accounting for 44 percent of the S&P 500's surge that day, data from Nomura showed.

U.S. stock indexes are hanging near their all-time highs in quiet trading on Monday. The S&P 500 was 0.1% higher in early trading, coming off its fifth winning week in the last six, and flitting around its record set on Thursday.