By Danny Vena, CPA
Publication Date: 2026-04-27 22:21:00
Nvidia (NVDA +3.97%) has been one of the most successful companies in recent memory. It pivoted from gaming to focus on the potential implications of artificial intelligence (AI) — long before the technology went viral. Nvidia’s graphics processing units (GPUs) cornered the data center GPU market by providing the computational horsepower needed to underpin these next-generation algorithms.
Concerns about a potential AI “bubble,” slowing adoption of the technology, and increasing competition had driven Nvidia down by as much as 20%. However, a recent rebound in investor sentiment has sent the stock to a new record high. When the market closed on Monday, Nvidia’s market cap climbed to $5.2 trillion.
This leaves investors asking the quintessential investing question: Is it too late to buy Nvidia stock? Let’s see what the evidence suggests.
Image source: Nvidia.
It’s all about the data center
Unless you’re a computer guru, you may not be familiar with the term parallel processing. In simplest terms, this is the process by which a computationally intensive task is divided among the many “cores” or processors in a GPU. By taking a large workload and breaking it down into smaller, more manageable tasks, the GPU makes short work of tasks once considered impossible.
Data centers are the epicenter of AI workloads, harnessing the power of legions of GPUs working in unison. While estimates vary, Nvidia controls as much as 92% of the data center GPU market according to IoT…
