Is Nvidia the largest AI stock?

Artificial intelligence (AI) has been perhaps the hottest investment theme on the planet in the past year. Companies involved in this high-growth region have tripled in stock prices, driving profits from three major benchmarks: the S&P 500, Dow Jones Industrial Average and Nasdaq.

Investors have piled up AI stocks as technology could streamline processes and develop new products and services that change the game. Today’s $200 billion AI market is projected to reach more than $1 trillion by the end of the decade, providing significant growth opportunities for the companies involved and investors who will take part in these growth stories early. Masu.

And one particular growth story that attracted a lot of attention is nvidia (NVDA) 0.90%))inventory has risen 1,900% over the past five years. The company is offering services to the video game market to dominate the AI ​​chip market, primarily due to its contribution to the video game market, with revenues exploding, with double or three digits after the quarter I climbed up. But is Nvidia really the biggest AI stock? Let’s look into it.

Image source: Getty Images.

How AI is transforming business

So, first, let’s talk a little about AI in general. This technology leverages the power of large-scale language models (LLMS) to help businesses, researchers, and even you and me in our daily lives at a variety of tasks. Some of these uses are more important than others and certainly can change the game. For example, AI streamlines corporate processes, identify risks to businesses, and encourages the development of new life-saving drugs and medical devices.

AI: Thanks to AI, which designs tools for the development of LLMS and AI platforms, many types of companies can generate revenue growth. Cloud providers have access to these tools, companies that include AI, including products and services to sell to others, and companies that apply to their businesses to gain efficiency and reach new results. . It’s a lot of potential AI winners.

Now let’s consider Nvidia’s position in the AI ​​market. The company is the dominant player of AI chips thanks to the quality of its graphics processing units (GPUs). These chips are the fastest to power critical tasks such as model training and guessing, and inference is a particularly important feature as they involve reasons why models proceed to answer complex questions. Here is the key to using many powerful GPUs. Therefore, this represents the growth area of ​​Nvidia.

AI’s Nvidia ecosystem

But Nvidia isn’t just about chips. The company is building an entire ecosystem of AI products and services, including enterprise software. This allows NVIDIA to engage in every stage of its customer AI development and serve all types of customers.

For example, you can access NVIDIA for GPUs and network options, or you can sign on to enterprise software to streamline deployments across your AI platform. Nvidia is set up to play a major role in the next wave of AI growth: agent AI, or AI-driven software that can infer and solve problems. The company and its partners have designed the AI ​​Blueprint to help customers design their own AI agents for use through the NVIDIA Enterprise Systems.

Potential headwinds?

While some investors are worried that rivals will challenge Nvidia’s advantage, the company’s leadership position and commitment to innovation today makes it difficult for other players to solve it. Masu. Another concern that recently came when Deepseek said he trained the model for under $6 million is that Nvidia customers could follow that route and cut their training budget.

I don’t see it happening. First, experts have already said that Deepseek’s numbers are not accurate – and Chinese startups have actually spent much more than they announced to train their models. Secondly, if it is possible to actually train models at a very low price, more and more companies will launch AI programs and offer Nvidia the opportunity to gain volume. Finally, it is important to remember that Nvidia GPUs may see significant growth as reasoning begins.

So, let’s go back to our question: Is Nvidia really the biggest AI stock? There are many very powerful AI players who make great investments. But if you’re only looking for one AI stock to buy now, it’s the name Nvidia snaps. From building out infrastructure to applying AI in practice, the company considers it the ultimate AI stock to profit from every stage of AI development. Beyond these stages, customers flock to Nvidia, which should bring great revenue growth and stock price performance over the long term.