NVIDIA: The AI Stock on the Rise Amid Fed Rate Cuts

NVIDIA's Power and Future in AI

NVIDIA Corp (NASDAQ:NVDA) is among the top artificial intelligence stocks that have caught investors' attention during the Federal Reserve interest rate cuts. Gene Munster, managing partner at Deepwater Asset Management, made positive comments about AI demand and opportunities in a recent CNBC interview with NVIDIA CEO Jensen Huang.

Munster responded to concerns about debt and new deals in the AI sector by stating that companies are not running out of organic capital sources, and investors continue to believe in the core growth story of AI. "I don’t think we’re facing challenges in terms of organic capital. Yes, the debt issue is a new situation. However, as Deep Water, we invest in both public and private companies, and we recently participated in the OpenAI bid. Demand has nearly doubled supply," he said.

NVIDIA holds approximately 90% of the GPU market, and this market is expected to reach a value of between $3 to $4 trillion by 2030. McKinsey forecasts that investment spending in data centers will reach $6.7 trillion in the short term without showing signs of slowing down. NVIDIA’s next-generation GPU series Rubin is set to launch in 2026, and the company also has a software advantage in AI computing with its CUDA platform.

NVIDIA’s Hopper Infrastructure and Blackwell form the foundation of AI infrastructure for training and inference of large language models. However, NVIDIA’s growth is slowing compared to previous quarters due to competition and budget constraints on investments by major companies. In the latest reported quarter, NVIDIA’s annual revenue growth was recorded at 56%, lower than the nearly 100% annual growth seen in the past.

Mar Vista U.S. Quality Premier Strategy included the following statements about NVIDIA Corp (NASDAQ:NVDA) in its third-quarter 2025 investor letter: "NVIDIA Corporation (NASDAQ:NVDA) continues to benefit from the development of AI infrastructure. Demand is strengthening for the Blackwell platform due to the increasing complexity of large language models and the rise of reasoning-based applications. As CEO Jensen Huang noted, reasoning tasks can require ten times the computational power compared to traditional large language model training. As the AI market is at the beginning of a multi-year investment cycle, NVIDIA is well-positioned to gain significant value as the industry standard in accelerated computing."

We believe that some AI stocks have the potential to provide higher returns and carry limited downside risk. If you are looking for an extremely cheap AI stock that benefits from Trump’s tariffs and reshoring, we recommend checking out the best short-term AI stocks.