By Danny Vena, CPA
Publication Date: 2026-05-12 07:00:00
Since early 2023, Nvidia (NVDA +1.90%) has been one of the undisputed beneficiaries of the mad dash to adopt artificial intelligence (AI). The company’s graphics processing units (GPUs) — which were developed to render lifelike images in video games (hence the name) — have since become the gold standard for AI training and inference.
In little more than three years, Nvidia stock has soared 1,410% (as of this writing), resulting in significant gains for shareholders. Yet fears of an AI bubble, rising competition, and geopolitical uncertainty have kept the stock rangebound, with the stock rising just 10% over the past six months.
However, Nvidia says it has clear visibility into demand over the next couple of years, and investors should be paying attention.
Image source: Nvidia.
It’s all about the data center
What sets Nvidia apart from its rivals is the company’s full-stack solution: a combination of industry-leading chips and software that coaxes higher performance from each successive version of its GPUs.
The company was among the first to understand the important implications of parallel processing, which accelerates computationally intensive workloads by dividing massive tasks into smaller, more manageable subtasks and assigning them to the various “cores,” or processors within the GPU. The ability to manage these increasingly Herculean tasks more swiftly was crucial to recent advances in AI and instrumental in Nvidia’s current success.
The hub of AI processing is…