A group of technology shares, known as “spectacular intake” – have begun to reversal in a node and recent times for the Western -LED stock market gains of 1960 last year. Which buys the best for the second half?

The answer to that question is Nvidia ,NVDA 1.74%,Even though the stock has already climbed 800% in the last three years. Let us know why this top artificial intelligence (AI) stock can still be in the early days of its development story.

Nvidia’s major position in AI

Since the first days of the AI ​​Boom, Nvidia has played an important role, and it is because it designs the important element that AI works: Chips. They are known as graphics processing units (GPUs), and they strengthen the fundamental move to train AI models, a process that allows those models to handle complex tasks and solve real -world problems. Therefore, without these chips, we will not have AI. With this, Nvidia’s revenue shut down a few years ago, as you can see in the chart below.

NVDA Revenue (Annual) Data by Ycharts,

In the earlier days of Nvidia, it mainly served video gaming market, resulting in progressive growth, but the level of revenue was far away from today’s AI-operated revenue. This is because companies realize the ability of this technology to save them time and money and even help them develop game-changing products and services, so they are investing in AI. And Nvidia, as the major chip designer, is benefiting. This capacity has been depicted by forecasts to reach the AI ​​market trillion dollars over the years from now.

Importantly, Nvidia is not just about GPU. The company has created an AI Empire, creating software and networking tools, and aims to provide electricity to tomorrow’s humanoid robots. This expansion is important for the growth of Nvidia as it enables the company to benefit from every stage of AI development-that ramp-up in the early days of the infrastructure.

Annual innovation of nvidia

Meanwhile, Nvidia has focused on innovation to ensure that it is ahead of its rivals. It has promised to update its chips annually and offered visibility to investors in a planned launch in the next three years. Although rival markets are out of share share – for example, Advanced micro equipment Recently reported an increase of 57% in data center quarterly revenue – NVDia’s innovation should be topped. AI’s heavy demand means that others such as AMDs can succeed without actually encroaching NVidia.

Greatest Disappointment for nvidia And at this point the investor (and possibly in the future) is a situation related to export to China. The US has blocked chip exports, excluding Nvidia from the market which represented 13% of its revenue last year. This is not a non-phenomenon, and if the situation is like, it limits the growth opportunities of Nvidia to some extent. The good news is that NVIDIA also makes a great deal in most of its revenue and other places in the US, so the situation of exports does not necessarily have to translate for a slow development for this chip giant.

Why buy NVidia on other fantastic seven players?

It all sounds positive, but why Nvidia is best the magnificent Seven Buy for the second half? Nvidia remains the best overall AI condition due to its deep appearance Every step Development of technology.

The world’s largest technical companies move to NVIDIA to provide electricity to their platforms, and it is unlikely to change, as these customers aim to use the fastest processor available – and they are likely to have Nvidia names well in the future. Nvidia will be with these customers as they deploy AI agents within their businesses or develop humanoid robots under the road.

At the same time, the evaluation of Nvidia leaves a lot of rooms to run the stock. Although it is more in recent weeks, it is still much lower than a few months ago. Further earnings estimate Compared to more than 50 times.

All these elements, from the presence of Nvidia to its price in AI today, support my prediction that this stock will thunder more in the second half and longer.