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Nvidia (NASDAQ:NVDA) remains the top semiconductor firm in the world by market capitalization and continues to shoot toward becoming the world’s most valuable company today. At the time of this writing, NVDA stock is up another 1.6%, trading at a new all-time high and a whopping $3.24 trillion market capitalization.

That’s incredible considering where this artificial intelligence (AI) play was just a few years ago. Of course, much has changed in recent years, with a resurgence of interest in chip stocks tied to continued technological development.

Given the robust nature of the AI trend we’re seeing play out in broader markets, companies like Nvidia that sell the high-performance chips required to make these applications possible are seeing big-time valuation upgrades. Now, expectations are building that a “$10 billion rush of demand” for NVDA stock could be building due to a number of key factors.

Let’s dive into what these factors are — and why Nvidia’s surge appears to be endless right now.

NVDA Stock: Soaring Demand for This AI Stock

From a fundamental perspective, there’s no denying Nvidia has some of the most robust growth expectations in the market. Over a large number of quarters, the company has continued to blow away revenue and earnings expectations. Accordingly, this stock is actually cheaper today than it was a year ago, despite seeing incredible stock price appreciation over this time frame.

But there’s more than just fundamental drivers behind any rally. From a technical standpoint, experts are pointing out a few main factors that could lead to $10 billion of capital flowing into NVDA stock.

For one, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) is expected to rebalance today, based on current market capitalizations. In other words, because Nvidia has soared to the degree that it has, more capital may be forced into the stock based on how these index funds are constructed.

Other key mega-cap tech holdings have risen but nowhere near the degree that Nvidia has. Accordingly, this rebalancing will be key to watch and investors are already pricing in some rather incredible near-term upside potential on this factor alone.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.