This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Key Points
- Nvidia's chips are a core component of today's AI development.
- Nvidia released spectacular results for the fiscal fourth quarter.
Nvidia (NASDAQ: NVDA) dispelled investor worries about a slowdown in artificial intelligence (AI) with a stellar earnings report last week. Revenue increased 62% year over year in the fiscal 2026 third quarter, and earnings per share (EPS) rose from $1.08 last year to $1.30 this year, blowing analyst estimates out of the water, as usual.
However, even though the results were spectacular, and the company updated investors with great news about future opportunities, Nvidia's stock barely registered it. There are still fears about where all of this AI spending is going.
If you were prescient enough to see Nvidia's potential 10 years ago and invested then, even $100 would be worth an incredible amount today.
The key to AI
There are multiple companies with heavy AI investments that are already changing the world. They have several key components, and for many of them, that includes Nvidia.
Nvidia designs the graphics processing units (GPUs) that make the most powerful AI possible. All of the top AI companies, like Amazon and Microsoft, have partnerships with Nvidia as they try to climb to the top of the AI mountain.
The advent of generative AI has completely changed Nvidia's trajectory as a chip company, and no one could have foreseen these developments 10 years ago. What investors could have seen was a company with solid technology committed to innovation, and if you believed in that mission, you'd be a lot richer today. All it would have taken was a $100 investment in Nvidia stock to have $23,000 today.
Although it looks like Nvidia stock is sputtering right now, that's part of how the market works. Long term, Nvidia could still create shareholder value, although at a slower rate; $100 today won't create nearly the same gains at today's prices.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
