By Will Healy
Publication Date: 2025-12-13 23:05:00
Another gain of almost 1,500% is unlikely, and this could change how shareholders view the stock.
When it comes to artificial intelligence (AI) stocks, Nvidia (NVDA 3.30%) seems unstoppable. Despite rising by nearly 1,500% from its low in October 2022, the increasing demand for AI continues to bolster Nvidia, which remains the dominant company for AI accelerators.
Still, its market cap now stands at almost $4.5 trillion after blowing past the $5 trillion mark in November. Since large companies tend to grow at a slower pace, smaller companies might appear more attractive to growth investors.
Knowing this, can the stock go higher, or should investors rotate out of Nvidia in favor of other tech names?
Image source: Nvidia.
The power of Nvidia’s dominance
When it comes to a mix of growth and safety, one might struggle to find a stock better positioned than Nvidia. It’s the dominant player in the AI accelerator market, and it is dealing with insatiable demand for its product.
Moreover, that demand is likely to remain strong. Between 2024 and 2030, Grand View Research estimates a compound annual growth rate (CAGR) for the AI chip market of 29%. Nvidia continues to far exceed that, and in the third quarter of fiscal 2026 (ended Oct. 26), its $57 billion in revenue was up 62% from year-ago levels.
Furthermore, its data center segment, which designs the AI accelerators, makes up about 90% of the company’s revenue. That segment reported more than $51 billion in revenue in the same…