Nvidia has become a major player in the world of artificial intelligence (AI). Their state-of-the-art graphics processing units (GPUs) are crucial components in servers that power advanced AI applications.

With the majority of the market share in the high-margin GPU category for AI and accelerated computing, Nvidia is expected to maintain its dominance despite competition from companies like AMD and Intel.

The company's stock has seen significant growth, increasing by 240% over the past year and 82% in 2024, leading to a market capitalization of around $2.27 trillion. This places Nvidia as the third most valuable company globally and third in the "Magnificent Seven" list.

As advancements in AI technology continue to accelerate, Nvidia has experienced a surge in demand for its processors, resulting in impressive sales and earnings growth.

In 2023, Nvidia's sales grew by 265% year over year to $22.16 billion, with annual sales reaching $60.9 billion due to a performance boost in the second half of the year. The company also reported a net income of $29.76 billion, highlighting its strong performance and high demand for its GPUs.

Although Apple and Microsoft currently generate more revenue and net income than Nvidia, the company is projected to outpace these tech giants in growth due to its leading position in the AI space.

With the potential to surpass Apple's market cap and potentially become the world's most valuable company within the next five years, Nvidia's future looks bright as it continues to benefit from the AI revolution.

While the business has historically been cyclical, its current momentum and excitement surrounding AI applications position Nvidia as a top contender in the tech industry.