artificial intelligence (AI)<\/a> by cloud service providers and other customers would slow have evaporated. Alphabet\u00a0gave more proof in its second-quarter update. The company raised its full-year capital expenditure guidance by $10 billion. This increase is due to Google Cloud investing in servers and data centers to meet rapidly growing demand.<\/p>\nWe haven’t heard Amazon’s and Microsoft’s\u00a0quarterly updates yet. However, I’d be surprised if their stories aren’t similar to Google’s. And when these cloud titans are investing more in servers and data centers, you can bet that a lot of the money will go to buy chips from Nvidia.<\/p>\n
2. Continued GPU dominance <\/p>\n
There’s a simple reason why customers are still turning to Nvidia: Its graphics processing units (GPUs) continue to dominate the AI market. Even with Google developing its tensor processing units (TPUs) and Amazon deploying its Inferentia and Trainium chips, Nvidia’s seat on the throne remains secure.<\/p>\n
Blackwell, Nvidia’s newest GPU architecture, has delivered the fastest commercial ramp-up in the company’s history. In the first quarter of fiscal 2026, Blackwell GPUs generated almost 70% of Nvidia’s data center compute revenue. Keep in mind that these chips began shipping in significant volumes just earlier this year.<\/p>\n
3. The CUDA moat <\/p>\n
Can Nvidia sustain its grip on the AI chip market? It seems likely, thanks to what some refer to as the company’s “CUDA moat.”<\/p>\n
CUDA (which stands for Compute Unified Device Architecture) is Nvidia’s proprietary platform that allows programmers to use its GPUs. This architecture has been around for years, with millions of programmers using it. There’s also an extensive library of code that’s optimized for Nvidia’s GPUs. The bottom line is that Nvidia’s competitive advantage in AI chips probably won’t disappear as long as the CUDA ecosystem remains strong.<\/p>\n
4. Expanding into new markets <\/p>\n
Nvidia has a successful track record of expanding into new markets. The company started out making chips for gaming systems before recognizing that its GPUs were ideal for powering AI models. It continues to move into new markets.<\/p>\n
For example, Nvidia’s Omniverse platform, which enables the creation of 3D simulations and digital twins, is already used by multiple major corporations. I suspect it could be a bigger growth driver in the future than meets the eye. The company’s Drive platform should also enable it to profit as autonomous vehicles become more widely adopted.<\/p>\n
Nvidia CEO Jensen Huang recently told shareholders that robotics represents the company’s largest opportunity after AI. And while Huang seemed to pour cold water on expectations for quantum computing earlier this year, he stated at a conference in June that the technology “is reaching an inflection point.” Unsurprisingly, Nvidia is investing heavily in quantum computing.<\/p>\n
5. Tomorrow will be more exciting than today <\/p>\n
Perhaps the most important reason to buy Nvidia stock like there’s no tomorrow is that there will be a tomorrow — and it will almost certainly be more exciting than today. The advancement of AI over the next few years, including the advent of AI agents and potentially artificial general intelligence (AGI), could turbocharge the demand for Nvidia’s GPUs. So could the proliferation of humanoid robots.<\/p>\n
Huang told analysts on Nvidia’s Q1 earnings call, “The age of AI is here. From AI infrastructures, inference at scale, sovereign AI, enterprise AI, and industrial AI, Nvidia Corporation is ready.” I think he was right.<\/p>\n
This article was originally published on Fool.com<\/a>. All figures quoted in US dollars unless otherwise stated.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images This article was originally published on Fool.com. All figures quoted in US dollars unless…\n","protected":false},"author":2,"featured_media":27677,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,1455,105,26714],"class_list":["post-27676","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-category-international-stock-news","tag-technology","tag-tickers_global-nasdaq-nvda"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/27676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=27676"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/27676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/27677"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=27676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=27676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=27676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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