Nvidia: The backbone of the AI world is unstoppable

Nvidia is the main AI enabler and beneficiary, making it the most important company in the world, and it is not done growing

Welcome to the 18th investment case and 9th AI & data center idea on Crack the Market (and the most comprehensive Nvidia investment case you will find online)! Join me as I dissect the most important company in the world right now, Nvidia dominates the most critical technology trend in history, being at the center of the AI revolution which will drive growth and astronomical profitability for years to come.

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 17 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience, reshoring & China idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

• Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.

• Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.

• RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.

• CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring.

• Novo Nordisk (resilience idea): The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life.

• Kurita (resilience, reshoring & China idea): Water services expert with improving margins and benefiting from reshoring of semiconductor production.

• Halma (resilience idea): High quality compounder in safety, health and environmental technologies.

• Quanta Services (resilience & reshoring idea): Countercyclical compounder riding a multi decade infrastructure buildout.

• Infineon (China idea): Power semiconductor leader with strong structural drivers (AI power and China auto) amidst a cyclical recovery.

• Hubbell (resilience & reshoring idea): Pure play on US electrification demand driven by AI and grid investment cycle.

• Iberdrola (resilience & reshoring idea): Best integrated utility in the world with a stellar track record and solid growth driven by networks and renewables

After reading this article, you will understand why Nvidia is so central to this new age of accelerate computing and AI data centers, what it does, how it has remained so dominant in a hyper competitive space and why it is unlikely to be dethroned anytime soon, how to read the company’s growth, value creation and potential, how Jensen Huang is maintaining the company on a war footing with an incredible innovation pace and what are the main debates, catalysts and risks around the company in the next few quarters and years.

In this article I go through:

1. What is Nvidia and how do they dominate the AI ecosystem.

2. How the company remains at the leading edge in such a hyper competitive and fast moving space.

3. What are the key debates, catalysts and risks that investors are focusing on from the investment cycle, the size of the market, to the competitive environment, the rise of inference and many other themes.

4. How instrumental the management team has been to the company’s continued success.

5. How its historical growth and profitability has brought incredible value creation to its shareholders and why this AI infrastructure story is set to continue.

Nvidia Investment Case