That said, the generative artificial intelligence (AI)<\/a> hardware boom is getting long in the tooth, leaving investors wondering if Nvidia can maintain its momentum in 2026. <\/p>\n Let’s dig deeper to see what the future may bring for the stock.<\/p>\n Image source: Getty Images.<\/p>\n Nvidia is still a fantastic company <\/p>\n With a\u00a0market cap<\/a> of $4.3 trillion, Nvidia is the largest company in the world, and it didn’t get to this point by accident. The chipmaker’s continued success has relied on its ability to create a deep economic moat in an industry with a fair bit of competition. For the most part, this edge relies on Compute Unified Device Architecture (CUDA), which is Nvidia’s proprietary software platform designed to allow developers to get the most out of its graphics processing units<\/a> (GPUs).<\/p>\n Nvidia has been a pioneer in GPU technology since its founding in 1993. And this means a whole generation of developers has been trained on CUDA. It now boasts a vast ecosystem of tools and user knowledge that has given Nvidia a practically unassailable moat in its niche, even if products from rivals like Advanced Micro Devices (AMD) can deliver similar raw specs.<\/p>\n The generative AI boom allowed Nvidia to leverage the advantages it has been nurturing for decades, and business is booming. Third-quarter revenue soared 62% year over year to $57 billion, driven by the continued popularity of new data center AI chips such as the Blackwell series. <\/p>\n According to CEO Jensen Huang, compute demand continues to accelerate. And Nvidia plans to release a new class of GPUs called Rubin, designed to tackle AI video generation in late 2026. On the surface, everything looks fantastic. But there are some rising uncertainties. <\/p>\n Today’s Change<\/p>\n (3.93%) $6.85<\/p>\n Current Price<\/p>\n $180.99<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $4.2T<\/p>\n Day’s Range<\/p>\n $176.34 – $181.45<\/p>\n 52wk Range<\/p>\n $86.62 – $212.19<\/p>\n Volume<\/p>\n 325M<\/p>\n Avg Vol<\/p>\n 192M<\/p>\n Gross Margin<\/p>\n 70.05%<\/p>\n Dividend Yield<\/p>\n 0.02%<\/p>\n What are the challenges?<\/p>\n While Nvidia’s business model is great for its shareholders<\/a>, it doesn’t seem ideal for its customers. Nvidia sells its hardware at tremendous markups. The entire company boasted a gross margin of 73.4% in the third quarter (popular products like Blackwell probably boast even higher margins). And these are the types of numbers you would typically expect to see in software companies that don’t sell physical products. <\/p>\n Nvidia is maximizing profit, as it should. But its clients also have a fiduciary responsibility to reduce their costs if possible. And this dilemma might come to a head over the next few years — especially as industry leaders like OpenAI continue to post eye-popping cash burn. The ChatGPT maker is believed to have lost more than $11.5 billion in its most recent quarter. And one analyst at Deutsche Bank thinks the problem could worsen, with total combined losses spiraling to $140 billion by 2029.<\/p>\n<\/p>\n
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