Nvidia Stock: Forget AI Data Centers, Is This Market Nvidia's Next Big Growth Driver?
It's clear that Nvidia (NASDAQ: NVDA) has been the biggest winner of the artificial intelligence (AI) infrastructure boom. Its graphics processing units (GPUs) have become the go-to chips for running AI workloads in data centers, thanks to their parallel processing capabilities. Parallel processing allows chips to perform many calculations all at once, which is essential for both training large language models (LLMs) and running AI inference.Just as important is Nvidia's CUDA software platform, which makes it easy for developers to build and optimize AI models on its hardware. The combination of best-in-class GPU performance along with a sticky software platform has helped cement the company's lead in the data center space.At the same time, this has been an explosive market. Over the past two years, its data center revenue has gone from $4.3 billion in the fiscal first quarter of 2024 (ended April 30, 2023) to $39.1 billion in fiscal Q1 of 2026 (ended April 27, 2025). That's a nearly 10 times increase in just two years. Continue reading
It's clear that Nvidia (NASDAQ: NVDA) has been the biggest winner of the artificial intelligence (AI) infrastructure boom. Its graphics processing units (GPUs) have become the go-to chips for running AI workloads in data centers, thanks to their parallel processing capabilities. Parallel processing allows chips to perform many calculations all at once, which is essential for both training large language models (LLMs) and running AI inference.
Just as important is Nvidia's CUDA software platform, which makes it easy for developers to build and optimize AI models on its hardware. The combination of best-in-class GPU performance along with a sticky software platform has helped cement the company's lead in the data center space.
At the same time, this has been an explosive market. Over the past two years, its data center revenue has gone from $4.3 billion in the fiscal first quarter of 2024 (ended April 30, 2023) to $39.1 billion in fiscal Q1 of 2026 (ended April 27, 2025). That's a nearly 10 times increase in just two years.
