Technology companies of all shapes and sizes are betting their future on artificial intelligence. The shockwave felt by almost everyone after the release of Openai’s ChatGPT was the catalyst for the current AI Landgrab, and subsequent releases of models and other advanced models released by competitors have been the result of all the kings. It supplies fuel. – The battle between high-tech giants.
Among the top candidates is semiconductor company Nvidia. (NVDA) 0.63%)). Once a vague name among more well-known high-tech companies, Nvidia has been pinned to the top of many investors’ purchase lists and jockeys to win the title of the most valuable company in Apple. Ta.
There is a risk that Nvidia will be selected as the top AI stock for the next decade just because it was a big winner in the past few years. However, there is also the risk of neglecting the company’s distinct advantages in the AI market and setting off on fewer AI stocks.
This is why I think Nvidia could move distances over the next decade.
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All components for creating a long-term AI leader
Nvidia designs some of the most advanced processors in the world. We will not manufacture them (check out Taiwan Semiconductors if AI chip making is yours), but instead use the Fabless semiconductor model, which designs chips that have become essential to the high-tech industry.
Nvidia’s processors account for an estimated 70% to 95% of AI chips, giving them a large lead among competitors such as advanced microdevice. To stay a few steps ahead of its rivals, Nvidia continues to release new AI chips that say tech companies are knocking down doors to earn hands.
For example, Blackwell processors are the next iteration of AI processors, and Nvidia’s CFO Colette Kress said in a recent revenue call that the company is increasing production.
“The demand for Blackwell is incredible and we are competing to expand our supply to meet the incredible demand our customers have on us,” Cress said. As already established, the company continues its history of releasing advanced AI processors that surpass its rivals and satisfy its customers, Nvidia could be many years before its growth.
A data center market ready for growth
Having chips in demand for now is one thing, but storing the opportunity on a number of years of opportunity is another thing. Therefore, the large data center market is a very important factor for NVIDIA.
Nvidia CEO Jensen Huang estimates data center spending will accelerate over the next few years as businesses aim to dominate AI with cloud computing and develop AI models. Huang said months ago, tech companies could spend up to $2 trillion over the next five years as they try to stay ahead of each other.
It’s a huge number to grab your head, but the biggest tech companies are already showing their hands with AI data center spending. Consider that Openai, Oracle, and SoftBank recently launched Stargate, a data center infrastructure plan that will spend up to $500 billion over the next few years.
And other technical leaders who compete for being the king of AI Hills do the same. Microsoft said it will spend $80 billion on data center infrastructure this year in its latest revenue call, while Meta CEO Mark Zuckerberg said his company is paying $65 billion this year. Ta. Another key AI player, Alphabet, says it will spend $75 billion this year on an AI data center.
Naysayers points out that AI startups cost much less and develop advanced AI models without the need for Nvidia’s most sophisticated processors. Deepseek recently shed light on this when it released an impressive AI chatbot despite the company’s limited resources.
But the long and shortage of that is that the world’s largest tech companies can’t afford not to invest in the best data centers with the most advanced processors. They are too at risk for them in the 15.7 trillion AI market (by 2030) to bootstrap AI efforts. This portends a good for Nvidia and its AI processors over the next few years.
nvidia will come out first no matter who wins the AI war
Nvidia is not the cheapest AI stock, earnings at 30.6 from its positive price. However, the company has proven to be a unique leader in the AI processor segment, poised for high-tech companies to profit from controlling AI.
There is no way to guarantee Nvidia’s success over the next decade, but considering its current position in the market and its ability to continue attracting customers, the all-out sprint technology company will outperform each other with data center talent Nvidia Looks like one of the best AI stocks.
Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Chris Neger has a position at Apple. Motley Fool recommends advanced microdevice, alphabet, Apple, Meta platforms, Microsoft, Nvidia, Oracle, and Taiwanese semiconductor manufacturing. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.
