By Fahad Saleem
Publication Date: 2026-05-08 13:50:00
We just covered
Cathie Wood’s 11 Biggest AI and Data Center Stock Picks. Nvidia Corp (NASDAQ:NVDA) ranks #7 (see Cathie Wood’s 5 Biggest AI and Data Center Stock Picks).
Nvidia Corp (NASDAQ:NVDA) is up about 15% so far this year, but bulls believe the stock has more upside potential. Its gains have been capped amid the AI bubble and CapEx fears. No amount of positive news seems to move the stock significantly. But the latest earnings season has shown that AI demand and CapEx is far from over.
Beyond its GPUs, which are in high demand and dominate the AI industry, Nvidia Corp (NASDAQ:NVDA) has growth catalysts like CPUs (Grace) and deeper infrastructure with NVLink and InfiniBand networking. Nvidia networking revenue has more than doubled year over year, driven by strong demand for systems like Spectrum-X that connect large AI data centers.
Full rack-scale systems is another strong growth catalyst. They combine compute, networking, and memory into complete data center units. This shifts Nvidia Corp (NASDAQ:NVDA) closer to a full infrastructure provider rather than just a chip designer.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2026 investor letter:
“At the same time, the angst around an AI bubble and the future return from the vast infrastructure investment spend has seen enthusiasm wane for the immediate beneficiaries. Take NVIDIA Corporation (NASDAQ:NVDA) for example, in their most…
