Nvidia’s next big growth catalyst is hiding in plain sight.
Nvidia (NVDA 4.26%) CEO Jensen Huang has been defining how the future of artificial intelligence (AI) will evolve. New terms like “sovereign AI” and “AI factories” are being splashed all over business news sites. But what do they really mean?
For investors, one thing they should mean is that Nvidia remains the one stock to buy to take advantage of global AI growth. The company has been the leader in selling the hardware needed to support massive compute power being tapped to develop and train large language models (LLMs). But there is much more to the AI ecosystem that Nvidia is already tapping into that will become its next catalyst for growth.
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AI factories are going global
AI factories are what Jensen Huang calls specialized data center facilities designed to develop, train, and deploy AI models at scale. He has been traveling the globe to promote Nvidia’s leading role in scaling up these Blackwell-powered factories. Nvidia will also be following its Blackwell GPU architecture with the next-generation Rubin platform in 2026.
These Nvidia component-based systems will support sovereign nation digital advancements around the world. These include the United Arab Emirates’ (UAE) massive Stargate data center campus, Germany’s sovereign AI factory run by telecom giant Deutsche Telekom, and European data center projects being developed by other nations. At a recent Paris tech summit, Huang summarized how the continent is scaling AI solutions, stating, “We now have a new industry, an AI industry, and it’s now part of the new infrastructure, called intelligence infrastructure, that will be used by every country, every society.”
Nvidia will be a major benefactor of this expanding infrastructure. Its powerful GPU clusters, software infrastructure, and networking solutions will all be prominent in many of these large data centers.
That’s the reason I think Nvidia’s growth will continue, and its stock should respond in turn. It’s the one stock I would continue to add to my portfolio over the next year if I were only allowed to choose a single name.
