Is NVIDIA the largest artificial intelligence (AI) stock?

Artificial intelligence (AI) may be the hottest investment theme on the planet over the past year. Companies involved in this high-growth region have seen their share prices rise in triple-digit growth and have grown for the three main benchmarks - S&P 500this Dow Jones Industrial Averageand Nasdaq.

Investors pile up in AI shares because of the potential for the technology to simplify the process and game-changing new products and services. Today’s $200 billion AI market is expected to reach more than $1 trillion by the end of the decade, providing significant growth opportunities for companies involved, as well as investors who have participated in these growth stories early on.

A special growth story that has attracted a lot of attention is Nvidia (NASDAQ: NVDA)The stock has soared 1,900% over the past five years. The company has gone from serving primarily the chips for the video game market to dominating the AI ​​chip market – with revenues rising and rising double or triple digits in the quarter. But is NVIDIA really the largest AI stock around? Let's find out.

Image source: Getty Images.

So first, let's talk about AI in general. By leveraging the power of Big Speech Model (LLM), this technology is helping companies, researchers and even you complete various tasks in your daily life. Some of these uses are more important than others and are bound to change the game. For example, AI is streamlining a company’s processes, identifying its business risks, and powering the development of new life-saving drugs and medical devices.

Thanks to AI, many types of companies can generate revenue growth: those who develop tools for LLM and AI platforms, cloud providers, provide customers with access to these tools, including AI, including AI in them The company AI that sells products and services to others, and applies to companies to increase efficiency and achieves new achievements in their business. This is a lot of potential AI winners.

Now, let's continue to consider NVIDIA's position in the AI ​​market. The company is a major player in AI chips due to the quality of its graphics processing units (GPUs). These chips are the fastest around and can power critical tasks such as training and inferring models. Inference is a particularly important feature as it involves the model by answering complex questions - here, using many high-power GPUs is key. Therefore, this represents the growth area of ​​NVIDIA.

But Nvidia is not only about chips. The company has built an entire ecosystem of AI products and services including enterprise software – which enables NVIDIA to participate in every stage of customer AI development and serve a variety of customers.

For example, you can head to NVIDIA for GPU and networking options, or you can log in to enterprise software to simplify deployment of the entire AI platform. NVIDIA will even play an important role in the next wave of AI growth: proxying AI or AI-powered software that can reason and solve problems. The company and its partners designed AI blueprints to help customers design their own AI agents for use through NVIDIA Enterprise systems.

Some investors fear competitors will challenge NVIDIA's dominance, but today's company leadership and commitment to innovation will make it difficult for another player to disappoint. Recently, when DeepSeek said it had trained a model of less than $6 million, it was a problem that Nvidia customers might follow this route and cut their training budgets.

I can't see this happening. First, experts have said DeepSeek's numbers aren't accurate - Chinese startups actually spend much more time than the publicity of training their models. Second, if models can indeed be trained at very low prices, more and more companies will launch AI programs – providing Nvidia with opportunities for profit. Finally, it is important to remember that NVIDIA GPUs can see significant growth as the inference begins.

So, let's go back to our question: Is NVIDIA really the biggest AI stock? There are many very powerful AI players out there making wonderful investments. But if you only need to buy one AI stock right now, Nvidia is the name you want to snap up. I think this company is the ultimate AI stock because it benefits from every stage of AI development - from infrastructure construction to practical application of AI to real-world situations. During these stages, customers will flock to NVIDIA, which will lead to excellent revenue growth and share price performance in the long run.

Ever felt you missed the ship to buy the most successful stock? Then you will need to hear this.

On rare occasions, our team of analysts and experts published "Double Down" stock Suggest companies they think are about to be popular. If you are worried that you have missed the opportunity to invest, now is the best time to buy before it’s too late. Numbers talk to themselves:

Currently, we are sending a "double decline" alert for three incredible companies and there may be no other chance soon.

learn more"

*As of February 3, 2025, stock consultants will return the goods

Adria Cimino has no position in any of the stocks mentioned. Motley fool has a place and recommends Nvidia. Motley Fool has a disclosure policy.

Is NVIDIA the largest artificial intelligence (AI) stock? Originally published by Motley Fool