Nvidia's Jensen Huang Calls the AI Opportunity "Immense." Here's What Could Happen Next.

Key Points

• Nvidia’s earnings and stock performance have soared over the past few years through the early days of the AI boom.

• The company’s customers recently have spoken about their plans for AI spending down the road.

• 10 stocks we like better than Nvidia ›

Nvidia's (NASDAQ: NVDA) great successes of the past few years actually have prompted investors to worry in recent times. They've asked themselves the following question: Are the stock's best days behind it? The artificial intelligence (AI) powerhouse has seen revenue soar in the triple digits in past quarters, and the stock price has taken off too -- it's climbed 1,300% over five years. Though Nvidia's earnings continue to beat analysts' estimates, growth has slowed into the double digits. In the fiscal second quarter, Nvidia reported a 56% gain in revenue, down from a 69% increase in Q1. This doesn't suggest a lack of demand for Nvidia's products or services though -- it's simply a normal part of the growth story. Nvidia's sales today are so high -- at more than $46 billion in the recent quarter -- that a double-digit gain from such a level is extremely positive. On top of this, Nvidia chief Jensen Huang delivered fantastic news to investors during the earnings report this week, calling the AI opportunity ahead "immense." Let's dig into what Huang had to say and consider what's next for the company and for the stock.

Image source: Getty Images.

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Why is Nvidia so successful?

Before diving in, though, it's a good idea to take a look at why Nvidia has become so successful. The company, which originally served the gaming market with its high-powered chips, recognized the potential of AI early on and decided to make that technology its priority. As a result, Nvidia's graphics processing units (GPUs) rose to the top early in the AI boom -- and Nvidia's commitment to innovation kept the momentum going.

Meanwhile, the company also expanded into a complete suite of AI products and services, and that's helped it attract a broad variety of AI customers across industries. All of this has supercharged earnings, helping revenue and profit reach record levels.

Now, let's move on to Huang's latest comments during the fiscal 2026 Q2 earnings call. "The opportunity ahead is immense," Huang said, referring to AI. "A new industrial revolution has started."

Major tech companies (and Nvidia customers) from Meta Platforms to Alphabet in recent times have spent aggressively on AI build-out, and this is set to continue according to their comments over the past few months. For example, Meta said during its latest earnings report that AI investment is paying off, and it plans to increase its AI infrastructure investment "significantly" next year.

Three trillion to $4 trillion in spending

This trend has prompted Nvidia to predict between $3 trillion and $4 trillion in AI data center-infrastructure spending by the end of the decade. And due to the strength of Nvidia's products so far and its commitment to innovation, it's likely to win back a great share of that investment. Nvidia's latest major release, the Blackwell architecture, drove $11 billion in revenue in its very first quarter on the market -- that was Q4 ended Jan. 26 of this year. And now the latest update, Blackwell Ultra, is seeing "extraordinary" demand, according to Huang.

Next up is the Rubin architecture, on track to launch next year, and importantly, customers can use earlier-generation Nvidia products seamlessly with these newest innovations. So, customers may stick with their older purchases and also benefit from Nvidia's latest releases to power their AI projects.

At the same time, Nvidia also is set to gain as newer areas of AI bloom, such as agentic AI -- the ability of AI to solve complex problems -- and robotics.

These elements should boost Nvidia's earnings and stock performance over the coming year and beyond. The AI boom looks set to continue, and even if Nvidia's revenue no longer pops in the triple-digits from the year-earlier period, the company still has what it takes to generate impressive growth along with strong profitability. Nvidia has kept its promise of delivering gross margin of more than 70% through the Blackwell launch, so it may continue on that track as Rubin launches too.

But, importantly, regardless of the direction the stock takes in the coming weeks or months, Nvidia's long-term growth story remains very bright. And that's why it's a great idea to hold onto this market leader for the long haul.

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.