NVIDIA Corp

NVIDIA designs chips and systems that power artificial intelligence, cloud computing, and high-end graphics. Its data center products and software are used by cloud providers and enterprises to train and run AI models. The company also sells GeForce graphics chips for gaming PCs and laptops, and offers networking gear to connect AI servers at high speed. Data center has been the fastest growing part of the business.

The AI build-out is the whole story here: data center demand has driven a massive jump in revenue and profits, while NVIDIA keeps rolling out new platforms like Blackwell across both data center and gaming. Financially, the company is in excellent shape—minimal debt, very strong cash generation, and the ability to easily afford its obligations—so solvency risk is low. The real risk is expectations: the stock is expensive (forward P/E ~32) and any slowdown or hiccup in product transitions, supply, or regional demand could hit both earnings and the multiple. Rising warranty reserves and the company’s own warnings about inventory and transition risks suggest bumps are possible even in a strong market. Net: quality and cash strength are undeniable, but the bar is high, so we see a balanced risk/reward over the next year.