By Micah Zimmerman
Publication Date: 2026-08-23 09:10:00
When someone asks me to name the best semiconductor stock to buy for now and the next few years, my answer is Nvidia (NVDA -0.98%). I look at plenty of other chip names, including Broadcom and Advanced Micro Devices, yet I keep coming back to Nvidia because it sits at the center of how artificial intelligence (AI) is built and used, not just at the edge of the hardware market.
The core of the story is Nvidia’s data center business. In the most recent fiscal year (ended Jan. 25, 2026), Nvidia reported quarterly data center revenue of $62.3 billion, up 75% year over year, and full-year data center sales are expected to be in the neighborhood of $180 billion. These are massive numbers and show that data centers are the main engine for the company. When hyperscalers and enterprises decide how many AI clusters to build, they start with Nvidia’s platform, then layer everything else around it.
The company’s platform is not just about a single AI chip. The company’s Blackwell…