Is Nvidia Stock Still a Buy After Its Incredible 1,100% Run? Here's the Honest Answer.

Nvidia (NASDAQ: NVDA), the beating bosom of the artificial quality (AI) boom, has seen its shares summation much than 1,100% since ChatGPT-3 was released to the nationalist astatine the extremity of 2022.

If you're wondering whether the banal inactive has country to grow, here's what you request to know.

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At the astir basal level, Nvidia designs graphics processing units (GPUs). Originally designed for rendering video crippled graphics, these chips are extraordinarily bully astatine a much lucrative task: moving the mathematics that makes AI work.

Training an AI exemplary is, astatine its core, a monolithic mathematics problem. You request to tally billions of calculations simultaneously, and that's precisely what GPUs were designed for. While accepted chips grip tasks 1 astatine a clip successful sequence, a GPU processes thousands of operations astatine once, successful parallel. That is conscionable what AI needs.

The company's imaginativeness meant that it was years up erstwhile the existent AI roar truly took off, and its contention has been struggling to drawback up ever since. Nvidia posted $215.9 cardinal successful gross for its fiscal twelvemonth 2026 (ended Jan. 25), up 65% from the twelvemonth earlier -- and a astir ninefold summation from $27.0 cardinal lone 3 years prior. You tin spot the parabolic maturation below.

Data halfway gross unsocial -- the conception driven astir wholly by AI request -- deed $62.3 cardinal successful Q4, increasing 75% twelvemonth implicit year. Gross margins are sitting supra 75%. These are staggering numbers for immoderate company, fto unsocial a hardware company.

Now, Nvidia has existent method enactment -- its chips are the astir almighty connected the marketplace -- but that isn't the essence of its moat.

Nvidia's Compute Unified Device Architecture (CUDA) is the bundle level that really enables GPUs to bash much than render graphics -- similar bid and tally AI models. Nvidia invested successful creating CUDA backmost successful the aboriginal 2000s, agelong earlier the existent AI boom. And it has go the de facto modular passim the AI industry.

Why does that matter? Because CUDA lone works with Nvidia's hardware. It creates lock-in.

Millions of developers cognize CUDA wrong and out, and large AI bundle similar PyTorch and TensorFlow are optimized for it.

That means erstwhile a concern oregon probe laboratory builds its AI infrastructure, it's apt gathering connected CUDA, and erstwhile you're built connected CUDA, moving to a competitor's spot is hard and expensive.