We recently covered 7 unstoppable artificial intelligence (AI) stocks to buy. Let's discuss whether NVIDIA Corporation (NASDAQ:NVDA) is the most unstoppable AI stock. The company has been making headlines and popping up on the radars of analysts, hedge funds, and even retail investors at Wall Street bets. To see other unstoppable AI stocks, visit 7 Unstoppable Artificial Intelligence (AI) Stocks to Buy
NVIDIA's Position in the AI Industry
NVIDIA Corporation ( NASDAQ:NVDA ) produces industry-leading GPUs for AI applications and has been at the forefront of the AI boom. The company's new Blackwell GPU, which is slated to launch by the end of this year, is capable of generating AI models at the trillion-parameter scale. The company also directs substantial investment into the development of AI software products such as its Advanced AI Platform for Enterprise that offers creative AI, data analytics, and inference.
NVIDIA Corporation (NASDAQ:NVDA) is signing deals with major tech players to fuel demand for its industry-leading GPUs. On May 21, NVIDIA Corporation (NASDAQ:NVDA) announced a collaboration with Microsoft to simplify the development and deployment of AI applications. Microsoft Corporation has developed an AI model, the Phi-3 family of miniature language models, optimized to run on NVIDIA GPUs. NVIDIA Corporation (NASDAQ:NVDA) also offers microservices such as CuOpt Route Optimization AI, which is included in the Microsoft Azure Marketplace and is part of the NVIDIA AI Enterprise Platform. Both companies are also heavily involved in developing a range of optimizations and integrations for developers to build AI applications. These improvements and integrations will be available in PCs powered by NVIDIA GeForce RTX and NVIDIA RTX GPUs.
On May 22, NVIDIA Corporation (NASDAQ:NVDA) reported strong earnings for the first quarter of 2025. The company reported earnings of $6.12 per share, beating estimates of $0.54. The company reported a surprising $26.04 billion in quarterly revenue, up 262% year-over-year and ahead of the market consensus of $1.45 billion. The company's data center revenue rose 23 percent to $22.6 billion, driven primarily by demand for its Hopper GPU computing platform. Major cloud providers that are customers of NVIDIA Corporation's ( NASDAQ:NVDA ) AI infrastructure account for 40% to 50% of data center revenue. Here are some comments from the company's Q1 2025 earnings call:
“In Q1, we worked with more than 100 customers to build AI factories ranging in size from hundreds to tens of thousands of GPUs, with some reaching 100,000 GPUs. From a geographic perspective, the data The center's revenue continues to diversify as countries around the world invest in Sovereign. Sovereign AI refers to a nation's ability to create artificial intelligence using its own infrastructure, data, workforce and business networks. “
The comments also reinforced the character of its new Blackwell GPU:
“At GTC in March, we launched our next-generation AI factory platform, Blackwell. The Blackwell GPU architecture delivers 4x faster training and 30x faster inference than the H100 and real-time on trillion-parameter large language models. Enables Time Generative AI. Blackwell is a big leap forward with 25x lower TCO and energy consumption than Hopper. Blackwell platform includes X800 series with multi-GPU backbone and new InfiniBand and Ethernet switches. Blackwell supports data centers globally, from hyperscale to enterprise, from training to assessment, from x86 to Grace CPUs, from ethernet to infinity-band networking, and from air cooling to liquid cooling. Designed for.”
Photo by Christian Wediger on Unsplash
What does the stock split mean for NVIDIA?
Along with its earnings release, NVIDIA Corporation (NASDAQ:NVDA) also announced a 10-1 stock split and a 150% dividend increase on May 22nd. On May 23, Lou Bessini, President and Chief Market Strategist of Public Ventures, appeared in an interview. Yahoo Finance where he discussed the stock's performance following its expected earnings release. The stock is up 90% year-to-date, as of May 23, and has reported strong earnings. However, analysts expressed concern about the thin margin by which NVIDIA Corporation (NASDAQ:NVDA) beat earnings. According to Basenese, the stock beat earnings expectations by 8%, its smallest ever, compared with its 40% beat in the first blowout quarter before the AI hype. In response to NVIDIA Corporation's (NASDAQ:NVDA) decision to split stock, Basenese indicated that the move was a good one if viewed through a psychological lens. He suggests that 40% of trading volume comes from retail investors, and stock splits will eventually add more to retail. He concludes the discussion by highlighting that NVIDIA Corporation's ( NASDAQ:NVDA ) products are the backbone of AI applications developed by mega-tech companies, meaning the earnings results were quite predictable.
On May 23, Morgan Stanley maintained an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA), and raised its price target to $1,160 from $1,000. Rosenblatt, on the other hand, maintains a buy rating on the stock and a $1,400 price target. Over the past three months, 36 Wall Street analysts have assigned buy-equivalent ratings to NVIDIA Corporation (NASDAQ:NVDA) and have an average price target of $1,104. The stock's forecast high of $1,400 as of May 23 represents a 5.65% upside from its current price of $1,041.19. According to analysts polled by Yahoo Finance, NVIDIA Corporation (NASDAQ:NVDA)'s earnings per share are expected to increase by 94%. 2025, compared to 2024. Despite NVIDIA Corporation's ( NASDAQ:NVDA ) strong earnings report and stellar year-to-date performance, the company remains second on the list of most unstoppable stocks to buy.
If you're interested in reading the most unstoppable AI stocks to buy, head over here. 7 Unstoppable Artificial Intelligence (AI) Stocks to Buy.
If you're looking for an AI stock that's as promising as NVIDIA but trades at less than 5 times its earnings, check out our report on it. Cheapest AI Stocks.
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Disclosure: None. This article was originally published on Insider Monkey.