By Anthony Di Pizio
Publication Date: 2026-05-05 13:45:00
Nvidia (NVDA 0.04%) supplies the world’s best graphics processing units (GPUs) for data centers, which are the primary chips used in artificial intelligence (AI) development. Sales have been so strong that the company’s valuation has ballooned from $360 billion to $4.8 trillion since the start of 2023, but there might be even more upside ahead.
Nvidia is scheduled to release its operating results for its fiscal 2027 first quarter (ended April 30) on May 20, and considering some of the company’s biggest data center customers have recently increased their AI infrastructure spending forecasts, I think the report could be a major upside catalyst for its stock.
Image source: Nvidia.
Nvidia’s fastest-ever chips are about to start shipping
Nvidia’s Blackwell GB300 GPUs are the most sought-after data center chips in the AI industry. In certain configurations, they offer up to 50 times the performance of the company’s original Hopper H100 GPUs, a huge leap given that the two generations are separated by just three years.
But Nvidia unveiled its new Vera Rubin platform last year, which includes the Rubin GPU, the Vera CPU, the latest NVLink 6 switches, and other networking components. Management says it will be so powerful that AI models can be trained with 75% fewer GPUs than on the Blackwell platform, translating to a 90% reduction in inference token costs.
Inference tokens are the text, images, or videos generated by an AI model in response to a user’s prompts. They are…
