The transformative power of artificial intelligence (AI) is undeniable. A recent McKinsey & Company research report estimates generative AI alone could add $2.6 trillion to $4.4 trillion in annual value across analyzed use cases -- comparable to the United Kingdom's entire gross domestic product.

One key point about Nvidia that sets it apart from other AI investments is that it's making piles of money from all of the AI investments from big tech companies. Hans Mosesmann from Rosenblatt Securities has a Street-high price target of $220 per share on Nvidia.

NVIDIA Corporation NVDA has once again proven its resilience, rebounding 8.9% on Tuesday after a brutal 17% plunge on Monday. The sell-off was triggered by concerns that Chinese AI startup DeepSeek’s latest artificial intelligence (AI) model could reduce demand for NVIDIA’s high-powered graphics processing units (GPUs).

When OpenAI released ChatGPT in 2022, companies started spending billions on GPUs to train AI models. Nvidia led the market for graphics processing units (GPUs), so it was the right company at the right time to deliver monster returns to investors.

Nvidia (NASDAQ: NVDA) has soared over the last two years, thanks to its dominance in artificial intelligence (AI) -- a market set to reach $1 trillion by the end of the decade from about $200 billion today.

DeepSeek just shook up the artificial intelligence (AI) world in the biggest way since OpenAI launched ChatGPT in late 2022. The Chinese company's new R1 large language model (LLM) reportedly matches or beats OpenAI's o1 model on some benchmarks.