The Next Phase of the AI Boom Could Be Even Bigger for Nvidia

• Nvidia is shifting accumulation capableness to maximize its information halfway products.

• Nvidia is resuming income to China.

• Rubin architecture volition thrust a monolithic spending spree among its clients.

• 10 stocks we similar amended than Nvidia ›

Nvidia (NASDAQ: NVDA) has been an perfectly unthinkable performer implicit the past 3 years. Its banal outperformed the marketplace successful 2023, 2024, and 2025, but tin it bash it successful 2026? I deliberation this adjacent signifier of artificial quality could beryllium adjacent bigger for Nvidia.

How is that possible? Let's find out.

When reviewing Nvidia's Q3 results, CEO Jensen Huang noted that Nvidia was "sold out" of unreality graphics processing units (GPUs). That's simply incredible, particularly considering that Nvidia generated $57 cardinal successful full revenue. Data halfway GPUs made up the bulk of that total, with $51.2 cardinal successful income coming from that division.

The information halfway part besides encompasses different non-GPU products Nvidia makes to enactment its ecosystem. However, it's inactive awesome to merchantability retired of a merchandise erstwhile income are already that high. To conscionable the unprecedented demand, Nvidia is looking to grow accumulation capableness successful immoderate mode possible. While it's pushing its suppliers upstream to supply much chips and different hardware, it's besides making capableness changes connected different merchandise lines.

One country wherever Nvidia is making immoderate hard choices is that it's reportedly cutting accumulation capableness for its gaming chips. Gaming generated $4.3 cardinal successful gross during Q3 for Nvidia, truthful it's not insignificant to Nvidia's business, but it could escaped up immoderate spot capableness to physique much profitable and in-demand information halfway GPUs.

Combined with the accrued proviso chain, these 2 factors volition summation Nvidia's accumulation capableness to conscionable lawsuit demand. However, gathering each of their request whitethorn not beryllium imaginable owed to the sheer measurement required by its clients.

So, adjacent clip you perceive astir an AI hyperscaler launching its ain spot oregon signing a woody with a competitor, similar Advaced Micro Devices, investors shouldn't presume that Nvidia's merchandise is inferior. It could beryllium that Nvidia doesn't person the capableness that they need, truthful they are turning to alternate sources.

This bodes good for Nvidia's aboriginal and volition let it to power the margins and pricing connected its products if proviso constraints persist. However, 2 different factors could supply Nvidia with a important maturation boost successful 2026.

In April 2025, Nvidia's export licence to vessel H20 chips (which were specifically created to abide by U.S. export laws to China) was revoked. This caused a immense dent successful Nvidia's business, though the institution kept increasing rapidly. For Q2, Nvidia expected astir $8 cardinal successful gross from H20 sales. That gross could instrumentality shortly, but it has a catch.