Think You Missed the Boat on Nvidia? Here's the No. 1 Reason It Could Keep Climbing.

Core Insights - Nvidia has significantly benefited from the AI boom, with its stock increasing over 1,400% in three years, outperforming the S&P 500 index which rose 79% in the same period [1][2]. Company Performance - Nvidia's data center revenue surged 56% year over year to $41.1 billion, accounting for over 88% of total revenue, driven by the increasing demand for AI infrastructure [5]. - CEO Jensen Huang stated that Nvidia is capturing a $35 billion revenue share from each gigawatt AI data center, which costs between $50 billion to $60 billion to build [4]. Market Position - Nvidia is positioned as the primary provider of hardware for AI development, with its GPUs, networking hardware, and software platforms being essential for new data centers [3][8]. - The ongoing investment by tech companies in AI infrastructure is expected to sustain Nvidia's earnings growth, despite a potential slowdown in year-over-year growth rates [5]. Investment Considerations - Nvidia's stock is currently priced at a premium, suggesting a cautious approach for new investors, such as dollar-cost averaging instead of lump-sum investments [6]. - Despite Nvidia's strong performance, it was not included in a recent list of the top 10 stocks recommended for investment, indicating potential alternative opportunities in the market [7].