NVIDIA stock (US67066G1040): AI demand drives record results and stock momentum

NVIDIA stock remains in focus after the chip designer reported another quarter of record AI data center revenue and announced a stock split, keeping the company at the center of the US AI investment theme.

NVIDIA stock remains closely watched by US investors after the chip designer reported another quarter of record results powered by artificial intelligence (AI) demand and unveiled a 10-for-1 stock split, according to a company presentation released on 05/22/2024 and subsequent earnings materials published the same day on its investor pages (NVIDIA press release as of 05/22/2024; NVIDIA investor materials as of 05/22/2024).

As of: 05/15/2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: NVIDIA Corp.
• Sector/industry: Semiconductors / AI computing
• Headquarters/country: Santa Clara, United States
• Core markets: Data centers, gaming GPUs, automotive, professional visualization
• Key revenue drivers: Data center GPUs for AI and accelerated computing, gaming graphics cards
• Home exchange/listing venue: Nasdaq (ticker: NVDA)
• Trading currency: US dollar (USD)

NVIDIA Corp.: core business model

NVIDIA focuses on designing graphics processing units and related software platforms for accelerated computing workloads, especially in AI and high-performance computing. The company pioneered the modern programmable GPU architecture and supplies chips and systems that are used in cloud data centers, personal computers, workstations and embedded devices. It mainly operates as a fabless semiconductor firm, outsourcing chip manufacturing to specialist foundries.

The business is organized around several platforms, with data center and gaming representing the largest revenue contributors. In the data center segment, NVIDIA supplies GPUs, networking hardware and software that enable training and inference of large AI models. In gaming, the company sells GeForce-branded graphics cards and laptop platforms to consumers and enthusiasts. Additional activities include automotive computing platforms for driver assistance and autonomous driving, and professional visualization products for designers and engineers.

Instead of manufacturing chips itself, NVIDIA concentrates on chip architecture, software stacks such as CUDA and AI frameworks, and system-level solutions that bundle GPUs with networking and related components. This asset-light design strategy can allow the company to scale output quickly in response to demand, provided that foundry and packaging partners can supply sufficient capacity.

NVIDIA also invests in ecosystems around its hardware, including software development kits, libraries and tools that help developers optimize applications for its platforms. This approach can create switching costs and support recurring demand, as customers that standardize on NVIDIA’s software stack may prefer to continue using compatible hardware in subsequent upgrade cycles.

Main revenue and product drivers for NVIDIA Corp.

Data center products have become the primary revenue driver for NVIDIA as cloud providers, enterprises and AI start-ups deploy accelerators for generative AI workloads. For the first quarter of fiscal 2025, which ended on 04/28/2024, NVIDIA reported total revenue of 26.0 billion USD, up 262% year over year, with data center revenue reaching 22.6 billion USD, according to the company’s earnings release dated 05/22/2024 (NVIDIA press release as of 05/22/2024).

The data center segment is built around GPU accelerators such as the Hopper and Ampere families, networking solutions from the Mellanox acquisition, and complete systems like NVIDIA DGX. Customers include major US hyperscale cloud providers and global internet services companies that require large-scale compute power to run and train AI models. Demand for these products has driven a rapid expansion of revenue and profitability over the last reported fiscal year as companies race to build AI infrastructure.

Gaming remains a substantial contributor, powered by GeForce RTX graphics cards for desktops and laptops. During the same fiscal quarter, gaming revenue reached 2.6 billion USD, up 18% year over year, supported by demand for RTX 40-series products and content such as ray-traced games and generative AI features in consumer applications, according to the quarterly figures published on 05/22/2024 (NVIDIA investor materials as of 05/22/2024).

Other product lines, including automotive and professional visualization, provide diversification but represent a smaller share of revenue. Automotive platforms, branded NVIDIA DRIVE, supply system-on-chips and software stacks to carmakers and suppliers seeking advanced driver-assistance capabilities. Professional visualization serves industries such as architecture, engineering, and media with GPUs and software aimed at rendering, simulation and design workflows. Over time, the company also promotes its Omniverse platform for industrial digital twins and simulation, which leverages the same GPU and AI foundations.

Conclusion

NVIDIA sits at the center of the current AI investment cycle, with data center accelerators and related software driving rapid revenue growth and strong margins in recent reported quarters. The company retains a significant role in the US equity market through its Nasdaq listing and its importance to large cloud and enterprise customers. At the same time, investors may weigh factors such as competition in AI chips, dependence on a relatively concentrated customer base and the cyclicality typical of the semiconductor industry when assessing the stock’s longer-term risk and opportunity profile.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.