Nvidia ( NVDA 0.53%) is one of the hottest stocks on the market today. Over the past five years, Nvidia shares have soared in value by nearly 1,500%, including another 20% in the last 12 months. Think the run is over? Think again. Nvidia stock remains far cheaper than most investors realize due to one critical factor.

The stunning rise of Nvidia Corp to become the first publicly traded company valued at $4 trillion underscores the massive importance to the stock market of the AI chipmaker and the technology sector.

Nvidia stock is up more than 50% over the past three months, leading the broader market rebound after the tariff selloff.

The accomplishment is even more impressive considering it has been just two years since Nvidia passed $1 trillion in market cap. Apple and Amazon reached $1 trillion in 2018 and Microsoft followed suit in 2019.

Many investors may wonder if shares have gotten too expensive to buy. Don't be fooled: Nvidia stock is still reasonably priced. Get the story here.

Nvidia shares were down 0.8% at $162.86 in premarket trading, in line with a slump in wider market futures. The stock rose 0.8% on Thursday and the company became the first to close above $4 trillion, cementing its position as the world’s most valuable by market capitalization.

Nvidia (NASDAQ: NVDA) shares climbed 0.7% on Thursday, July 10, to close at $164.10,  outperforming the broader market and pushing the chipmaker over the $4 trillion market capitalization threshold at the close of trading.