Is Nvidia Stock Still a Buy After Its Incredible 1,100% Run? Here's the Honest Answer.
Nvidia's stock has gained over 1,100% since ChatGPT-3 was released in 2022, driven by its dominance in AI hardware and software, with revenue reaching $215.9 billion in fiscal year 2026. The company's CUDA software platform creates a lock-in effect, making it difficult for customers to switch to competitors' chips.
Nvidia's shares have surged over 1,100% since ChatGPT-3's release in 2022. The company's GPUs are crucial for AI computations, and its CUDA software platform has become the industry standard. Nvidia's revenue hit $215.9 billion in fiscal year 2026, with data center revenue growing 75% year-over-year to $62.3 billion in Q4. CUDA's compatibility only with Nvidia's hardware creates a lock-in effect, making it hard for customers to switch. Nvidia's CEO, Jensen Huang, considers this software ecosystem the company's most important asset. The main risk to Nvidia's future performance is not competition, but whether AI investments will yield returns. Despite massive spending on AI infrastructure, returns have been minimal, with numerous studies showing little impact on worker productivity.
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