By Adria Cimino
Publication Date: 2026-04-12 09:06:00
Nvidia (NVDA +2.59%) is known for its artificial intelligence (AI) chips. These graphics processing units (GPUs) power some of the most critical tasks in the field, from training large language models to putting them to work. And this has helped the tech giant increase its revenue to mind-boggling levels: In the latest quarter, revenue surged 73% to $68 billion, and analysts expect the pace to continue. Forecasts for the current quarter call for a 77% increase in revenue.
Of course, Nvidia isn’t alone in the chip market. It faces rivals such as fellow chip designer Advanced Micro Devices — and even some of Nvidia’s customers, like Amazon, have developed AI chips. But these competitors haven’t matched the performance of Nvidia’s latest GPUs. And in an area where speed and efficiency count, customers continue to rush to the player offering this top performance — that player continues to be Nvidia.
Though Nvidia has built an empire thanks to the GPU, the company has constructed a solid competitive advantage thanks to another related technology. In investing, identifying a competitive advantage, or moat, is crucial, as this one element may keep a company at the head of the pack.
Let’s check out this one particular creation that makes Nvidia stock a screaming buy today, ahead of the next phases of AI growth.
Image source: Getty Images.
Nvidia’s gaming strengths
Before we discuss this major innovation, it’s important to consider Nvidia’s early days. The company, founded…
