No trend has played a bigger role in sending the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite to record highs than the evolution and proliferation of artificial intelligence (AI).
Empowering software and systems with the tools to make autonomous, split-second decisions is a $15.7 trillion global opportunity by 2030, according to PwC analysts
And no company has been more foundational to this AI-driven rally than Nvidia (NASDAQ: NVDA), which has added nearly $4.8 trillion in market value since the start of 2023. While Nvidia’s graphics processing units (GPUs) have done most of the heavy lifting, CEO Jensen Huang’s company has racked up a nearly $20 billion profit from an unlikely source over the previous five months. Nvidia has set the infrastructure standard in enterprise data centers Make no mistake about it, the lion’s share of Nvidia’s sales and profits comes from its high-margin data center segment.
The company’s several generations of GPUs, including Hopper, Blackwell, Blackwell Ultra, and Vera Rubin, are superior to external competitors on a compute basis. Huang intends to bring a new advanced chip to market each year, making it difficult for any of its peers to catch up. In addition to its technical superiority, Nvidia is benefiting from favorable supply chain dynamics.