Today, NVIDIA (NVDA) closed at $141.22, up 2.8% in a single day, with its market cap soaring to $3.45 trillion, surpassing Microsoft to reclaim the title of "world's most valuable company." This isn't luck—it's the result of NVIDIA capitalizing on the AI wave to reap the biggest rewards.

NVIDIA's profitability is truly staggering. In its latest fiscal quarter, revenue hit $44.1 billion, up 69% year-over-year, while net profit approached $20 billion, a 26% increase. Its most lucrative segment, the "data center" business—which specializes in providing chips for AI training—contributed $39.1 billion, accounting for an ever-growing share. This solidifies its position as the "undisputed leader" in AI infrastructure.

Despite the sharp rise in its stock price, many worry it's overvalued and due for a correction. While valuations aren't cheap, many institutions remain bullish. For example, investment bank Jefferies has named it a "top pick," with a price target of $175, projecting future gross margins above 70%—a near-unprecedented level in the hardware industry.

So, what should ordinary investors do? It's simple:

If you believe in the AI industry as a long-term trend, NVIDIA is a stock worth watching.

But if you're a short-term trader or feel uneasy about the rapid gains, avoid chasing the rally. Instead, wait for a pullback to buy gradually or use dollar-cost averaging to enter the market.

In summary, NVIDIA is no longer just a chip company—it's a "critical infrastructure provider" for the AI era. Short-term volatility is inevitable, but in the long run, its technological edge and market position may still have room to grow.