Nvidia (NASDAQ:NVDA) has proved to be a standout holding for long-term investors. Indeed, one look at Nvidia’s stock chart over essentially any time frame shows what investors hope to see. That is, a line moving up and to the right, rather consistently. This will have big implications for NVDA stock holders in the future.

Of course, Nvidia’s recent performance has been remarkable. This stock has more than tripled over the past year and grown roughly 1,3000% over the past five years. Now trading near an all-time high, NVDA stock remains a top choice on Wall Street, given its strong year-to-date gains.

In 2023, Wedbush’s Dan Ives predicted a new tech bull market would be fueled by AI hardware growth. In this space, Nvidia dominates generative AI chips, making the investment thesis around this giant easy to understand. As the company continues to generate solid revenue and profit growth from its 85% market share in accelerator chips, I expect this stock’s strong performance is likely to continue over the long term.

While risks are prevalent in the coming 12-24 months, there’s good reason why NVDA stock is trading near all-time highs at the time of writing. Let’s dive into why so many investors remain bullish on this name.

A Strong Bull Case

NVDA stock has what only can be described as a dominant AI sector presence. The company’s significant market share in high-performance GPUs has led to incredible growth, and investors have certainly profited from this improved trajectory. The company’s recently released advanced H200 AI chips emphasize the company’s commitment to technological innovation. Data center growth is expected to continue at a brisk pace in the years to come, and these chips should be a central part of the Nvidia story through 2025 and beyond.

Additionally, the company has seen strong growth in its gaming segment, which currently constitutes around one-third of the company’s revenues. Nvidia also holds a dominating share of workstation graphics, and its software ecosystem with 100+ RTX-supported applications and AI integration ensures future growth. Additionally, Nvidia’s DRIVE platform has bolstered its position in the automotive market.

This Rally is Picking Up Steam

Last year’s impressive rally was driven by incredible demand for Nvidia’s core chips. However, there are other factors investors are increasingly focusing on, such as the company’s accelerated computing platform.

Nvidia’s HGX platform, which is based on the Hopper Tensor Core GPU architecture and InfiniBand networking, has seen significant growth. As more AI supercomputing companies come to market and data center infrastructure companies focus on growth, Nvidia’s hardware and software services will continue to come into focus.

Nvidia’s data center segment is perhaps the most important driver of long-term growth and has been seen acceleration of late. The company’s compute revenue quadrupled year-over-year, and Q3 networking revenue nearly tripled. I think there are a number of drivers that could see this growth rate remain very robust for many quarters to come.

In 2023, Nvidia’s impressive stock growth has certainly raised valuation concerns. With NVDA stock now trading at around 31 times sales, it’s hard to build a thesis around this company on the basis of multiple expansions. Additionally, if data center revenue peaks this year, it’s possible the company’s multiple could come down to reflect a more benign environment in the years to come.

That said, consumers’ appetite for data is endless, and I think there’s a good reason why the bull thesis around Nvidia drowns out the noise. Despite uncertainties, the company’s robust investments in infrastructure support large language models and generative AI applications which should see sustained demand for years to come.

NVDA Stock Remains a Buy

Nvidia’s recent strong results, its myriad of growth factors, and its $10 billion share buyback program all point to improving fundamentals over time. So long as NVDA stock continues to grow into its valuation, there’s room for upside. Accordingly, for those bullish on sectors tied to data usage and AI computing needs, Nvidia will remain a top option to consider for the long term.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.