By Geoffrey Seiler, The Motley Fool
Publication Date: 2026-08-22 12:25:00
When it comes to artificial intelligence (AI) semiconductor stocks, Nvidia (NASDAQ: NVDA) is the gold standard, and there is still a lot to like about the stock. It remains the dominant chip company for AI model training, and that is unlikely to change. Most early foundational AI code was written using its CUDA software platform and optimized for its graphics processing units (GPUs), creating a wide moat in this arena.
Meanwhile, Nvidia hasn’t rested on its laurels. The company is a huge player in data center networking, which has formed the base for it to become a complete AI infrastructure player offering end-to-end rack-scale solutions designed for specific AI tasks. The company also created its own custom Arm-based central processing units (CPUs), which will serve it well as the rise of agentic AI drives servers focused on AI agents to contain more CPUs.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia has also positioned itself well for the inference market through its “acquisition” of Groq and its language processing units (LPUs). LPUs contain a small amount of SRAM (static random-access memory) and are strung together to help reduce latency and speed up inference speeds. For systems designed for inference, Nvidia will combine its GPUs,…
