Where NVDA Won in 2025 & How 2026 Will Continue A.I. Momentum

Core Insights - Nvidia has transitioned from being primarily a chipmaker to a platform company that drives an ecosystem around AI, marking a significant change in its market perception [2][3] - The demand for Nvidia's products remains strong, driven by investments from hyperscalers and startups competing for GPUs, indicating a robust growth trajectory [4][5] Demand Dynamics - There is a substantial investment influx from hyperscalers and various NeoClouds, with companies expressing a need for more computational power [4][5] - Startups are actively seeking GPUs and are willing to pay premiums, highlighting the ongoing demand for Nvidia's offerings [5] Supply Constraints - Short-term supply constraints are expected due to limitations in wafers, packaging, and memory, while power may become a longer-term constraint [7][8] - The supply chain is currently unable to meet the high demand, which is anticipated to persist for several years [8] AI Ecosystem Development - Nvidia is not only focusing on hardware but also on software and partnerships, enhancing its full-stack capabilities [3][10] - The company is investing its free cash flow into private and public markets to foster the next generation of companies that will utilize advanced AI applications [11] Future Outlook - The total addressable market (TAM) for AI accelerators is projected to expand significantly, with estimates ranging from $600 billion to $800 billion by the end of the decade [13][14] - Nvidia's dominance in the market is expected to remain intact, with demand continuing to outstrip supply, suggesting a stable competitive landscape for the foreseeable future [12][16]