Nvidia’s (NASDAQ:NVDA) stock popped following impressive earnings in May, as revenue and net income grew 262% and 628% respectively on a year-over-year basis. Amid strong demand for its AI chips, Nvidia’s venture into cloud computing offers further growth prospects investors are clearly pricing in.

CEO Jensen Huang announced AI accelerator updates, including the Blackwell Ultra chip in 2025 and the Rubin platform in 2026, to expand beyond cloud-computing giants. Huang stresses the need for AI adoption across sectors for future competitiveness. Here’s more on why Nvidia looks like a stock every investor simply needs to own right now.

Nvidia Stock Represents World’s Second Most Valuable Company

Nvidia just hit a $3 trillion market capitalization on Wednesday, surpassing Apple (NASDAQ:AAPL) as the second-most valuable company worldwide.

This move comes as investors put a premium on Nvidia’s significant contributions to AI and its forward projections.

Now up roughly 150% this year alone, NVDA stock simply looks unstoppable, with its targets clearly set on Microsoft (NASDAQ:MSFT) and the mantle of the world’s most valuable company.

Through capitalizing growth in AI, gaming, and crypto, Nvidia is driven with innovation and demand is quite high for its chips. The company is heavily weighted on both Nasdaq and S&P 500.

Nvidia has been a force, driving U.S. stocks to record highs, contributing nearly a third of the overall profit reported by the S&P 500 in 2024.

If this rally continues, it’s entirely feasible to live in a world where Nvidia takes top spot in the market, and in short order.

New AI Chips

Nvidia unveiled its next-generation AI chips, “Rubin,” just months after announcing the “Blackwell” model. CEO Jensen Huang introduced Rubin ahead of the COMPUTEX conference in Taipei. This rapid progression highlights Nvidia’s accelerated AI chip development.

Nvidia committed to releasing new AI chips annually, shifting from a two-year update cycle. The quick transition from Blackwell to Rubin in less than three months shows intense competition in the AI chip market. The company is also experiencing tight competition with other tech giants like Amazon, AMD, Google, Intel, and more. 

Huang stated that computing is on the verge of a significant shift, driven by Nvidia’s AI and accelerated computing innovations. The new Rubin chip platform will feature advanced GPUs and a central processor named “Vera,” although details were limited in the announcement.

Upcoming 10 for 1 Stock Split

After announcing its May 22 strong earnings report, Nvidia also revealed a 10 for 1 stock split. This will make it easier for investors to buy stocks from the AI chip giant. Shares saw a 9% increase after the news, and the market also anticipates more increases after the split.

The stock split will allow shareholders 10 shares for each one they have. Shareholders as of June 6 received nine additional shares after market close on June 7, with split-adjusted trading starting June 10.

This increased the number of shares tenfold, lowering individual share prices without affecting total investment value or market cap.

The stock split aimed to broaden Nvidia’s investor base and enhance liquidity, with its high price potentially deterring some investors.

Nvidia cited accessibility as a motive, aiming to make stock ownership easier for employees and investors. Lowering stock price could also facilitate inclusion in price-weighted indexes like the Dow Jones Industrial Average.

NVDA Stock Remains a Strong Buy

Nvidia plans to launch its Rubin platform in early 2025, with Taiwan Semiconductor Manufacturing producing the chips.

The Rubin platform’s 4x reticle design, larger than Blackwell’s 3.3x, has sparked positivity in NVDA and TSM stocks. Conversely, AMD’s stock decline hints at market optimism for Nvidia’s new chips and partnerships.

With its stock doubling year-to-date and surpassing a $3 trillion market cap, Nvidia eyes the top spot among publicly traded firms, backed by a strong buy rating from analysts.

On the date of publication, Chris MacDonald did not hold (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.