By Chris Neiger
Publication Date: 2026-02-10 00:30:00
Nvidia should continue to benefit from a surge in artificial intelligence (AI) spending.
It’s no surprise that corporate spending directed toward artificial intelligence (AI) is ramping up. Companies across nearly all sectors are trying to position themselves as leaders in AI, or at least not get left behind, and that’s causing many to spend piles of cash to stay competitive.
One company that’s already seen a huge surge in demand for AI hardware as a result of this spending is Nvidia (NVDA +2.58%), and more could be on the way. Here’s why Nvidia stock is poised to benefit for years to come.
Image source: Getty Images.
No one can match Nvidia’s AI chip market share
Nvidia designs processors used in AI data centers, and the company has a commanding lead over rivals, accounting for about 90% of the GPU market.
And it’s this massive competitive advantage that’s led to such phenomenal financial results for Nvidia. The company’s third-quarter (which ended Oct. 26, 2025) sales rose 62% to $57 billion, and its diluted earnings per share climbed 67% to $1.30.
Nvidia CEO Jensen Huang said the company’s Blackwell processor sales are “off the charts” and that its GPUs for cloud computing are sold out. Huang added:
We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI start-ups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.
In short, demand for AI processors…
