NVIDIA's AI Growth Attracts Investors

NVIDIA Announces 56% Growth

NVIDIA Corporation (NASDAQ:NVDA) stands out as one of the most attractive investments among artificial intelligence stocks amid Federal Reserve interest rate cuts. Gene Munster, managing partner at Deepwater Asset Management, evaluated NVIDIA CEO Jensen Huang's encouraging comments regarding the demand for and opportunities in artificial intelligence during an interview with CNN Business. In response to concerns about debt and new agreements in the AI sector, Munster stated that companies are not facing an organic capital crunch and emphasized that investors' belief in the growth story of artificial intelligence remains strong.

Munster said, “My view is that we do not have a shortage of organic capital. Yes, this debt issue is a new concept, but at Deepwater, we invest in both public and private companies, and recently we invested in this OpenAI bid. The demand came out to be almost twice what was provided,” he said. NVIDIA holds about 90% of the market share, and according to Jensen Huang, this market is expected to reach $3 to $4 trillion by 2030.

McKinsey reports that data center investment spending will rise to $6.7 trillion and does not foresee a slowdown in the short term. NVIDIA's next generation graphics processing unit series, Rubin, will be released in 2026, and the company has a software advantage in artificial intelligence computing with its CUDA platform, which has now become the de facto standard for AI programming.

NVIDIA's Hopper Infrastructure and now Blackwell are key components of the AI infrastructure for training and inference of large language models. However, NVIDIA's growth is slowing compared to previous quarters due to competition from major companies and restrictions on investment spending. In the most recently reported quarter, NVIDIA's annual revenue growth was recorded at 56%, a rate that had previously shown nearly 100% growth in past years.

Mar Vista U.S. Quality Premier Strategy stated the following in its investor letter for the third quarter of 2025 regarding NVIDIA: “NVIDIA Corporation (NASDAQ:NVDA) is benefiting from the construction of AI infrastructure as hyperscale technology companies race towards general artificial intelligence. Demand for the company's next-generation Blackwell platform remains strong due to the increasing complexity of large language models and the rise of reasoning-based applications. CEO Jensen Huang emphasized that reasoning tasks could require ten times more computing power than training a conventional large language model. Since the AI market is still in the early stages of a multi-year investment cycle, NVIDIA is well-positioned to capture significant value as the industry standard in accelerated computing.”

While we acknowledge the potential of NVIDIA as an investment, we believe that some AI stocks may offer a greater promise of returns and carry limited downside risk.