Nvidia's market cap reached a historic $2 trillion high, fueled by AI investments and robust options trading, with its options making up a quarter of the single-stock options premium traded in the U.S.

The surge in Nvidia's stock is linked to its pivotal role in the generative AI trend, with a daily trading of nearly $3 billion in options premiums.

Other AI-focused firms like Super Micro Computer and Arm Holdings are also experiencing heavy options activity, while the chip industry anticipates a 13% market value growth in 2024.

U.S. export restrictions on Nvidia's chips to China raise national security issues, with some investors, including Cathie Wood of ARK Invest, expressing caution over potential overvaluations.

Despite Nvidia's milestones, major indexes were down early Monday afternoon, yet SoundHound AI's stock soared by 39.5% following the announcement of the AI-RAN Alliance involving key industry players.

SoundHound AI's stock rise is partly attributed to Nvidia's recent investments and partnerships aimed at enhancing AI capabilities in the telecom sector, for which SoundHound's voice-assistant technology could benefit.

While investor sentiment is buoyed by these developments, SoundHound AI was not listed among The Motley Fool Stock Advisor's top 10 stock recommendations.