While NVIDIA Corporation (NASDAQ:NVDA) trailed off a bit at the end of the year, the company has quickly regained its momentum. This week, Nvidia stock has gone from $193.50 to $213.10 as of yesterday’s close.

This is not just a case of general bullish sentiment. Rather, Nvidia stock has benefited from some good news — which, as it turns out, is very bad news for Intel Corporation (NASDAQ:INTC).

Intel Stumbles as Nvidia Stock Rumbles

You see, Intel is embroiled in a major controversy. A news report claims there is serious glitch in some of its offerings — mainly, they are more susceptible to hacks and will also suffer from slowdowns, ranging from 5% to 30%.

Although INTC has noted that there will be a software patch, the damage has already been done, as the company’s shares have taken a big hit.

And, according to Mizuho Securities analyst Vijay Rakesh, this is good news for Nvidia and other companies.

“Near-term, given some of the vulnerabilities on INTC processors, we believe AMD and NVDA could use it as a marketing edge given differing architectures and no vulnerability yet,” Rakesh said. “It could be a tailwind for AMD and NVDA which are not seeing similar issues because of a different architecture implementation.”

There were also positive comments on Nvidia stock from RBC Capital’s Mitch Steves. He is projecting strong growth in the data center (which could benefit from INTC’s stumble) as well as gaming, with a big driver being the traction with Nintendo’s (OTCMKTS:NTDOY) Switch gaming console.

Oh, and something else to keep in mind: Next week is the all-important CES tech conference. There will probably be lots of buzz that will help juice up NVDA stock even more.

The Long View on Nvidia Stock

For quite some time, Nvidia stock has been mostly a can’t-miss for investors. During the past five years, the average annual return has come to an amazing 75.93%.

But, of course, this means that valuation on Nvidia stock looks a bit bubbly. Keep in mind that the price-to-earnings ratio is a hefty 54.4. For a business that is prone to cyclical swings, that’s pretty expensive. And, as seen with INTC, the chipmaking process can be extremely complicated. Hey, who’s to say that NVDA won’t also — at some point — botch its own development?

It’s definitely possible.

So, yes, there are clear risks with Nvidia stock — but I still think they are worth taking. The key is that NVDA has the advantage of being a leader in GPUs (graphics processing units) that have proven to be a spot-on for AI (Artificial Intelligence). The technology allows for enormous amounts of processing with relatively lower costs.

Early on, NVDA CEO Jensen Huang realized this potential and doubled down on the opportunity. As a result, he has built a business that is growing at a robust rate. For example, the data center segment has been supercharged with AI, as customers want to gain deep insights from their IT systems.

It certainly helps that NVDA continues to push the envelope. Note that the TensorRT inference acceleration platform has quickly snagged over 1,200 customers that want hyperscale solutions, like Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT).

Then there is the automotive business. While it has been choppy, there is tremendous upside with the category. NVDA’s Drive PX Pegasus allows for Level 5 driverless vehicles and can process 320 trillion operations per second.

More importantly, the AI opportunity is mega-secular trend. After all, according to IDC, the global spending on AI hardware and software technologies is expected to jump from $12 billion in 2017 to a whopping $57.6 billion by 2021. Yes, this is the kind of thing that can keep driving a company’s stock value, even if the multiple is far from cheap.

Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.