Nvidia has delivered another blockbuster quarter, but one top-ranked investor says the market is still missing the bigger story.
The chipmaker reported record first-quarter revenue of $81.6 billion, up 85% from a year earlier, as demand for AI infrastructure continued to surge.
Yet the bull case is no longer just about selling more GPUs to Microsoft, Amazon, or Google.
Yiannis Zourmpanos, a five-star investor ranked among the top 1% of stock pros tracked by TipRanks, argues that Nvidia is quietly becoming the foundation layer of the AI economy itself.
That shift, he says, could leave the stock with another 40% upside.
Nvidia’s quiet identity shift
For years, the Nvidia story was easy to understand as cloud companies rushed to buy Nvidia’s AI chips, pushing demand and profits sharply higher.
That story is still true, but Zourmpanos says it is no longer enough. In his view, Nvidia has moved beyond the old GPU supply-and-demand trade.
The company is now monetising the full AI stack, from compute and networking to orchestration, sovereign AI and CPUs.
In simpler terms, Nvidia is no longer just selling the bricks for the AI boom; it is increasingly shaping the whole construction site.
The latest earnings support that view.
Nvidia’s data centre revenue hit a record $75.2 billion in the quarter, up 92% from a year earlier.
Gross margin stood at 74.9%, showing that the company still has strong pricing power even as its revenue base has become enormous.
Nvidia also guided for second-quarter revenue of about $91 billion, plus or minus 2%, ahead of what analysts had expected.
That is why Zourmpanos called Nvidia the “foundational infrastructure layer” of AI.
Why the CPU move could lock out competitors
The most important part of the argument may not be GPUs at all.
Zourmpanos points to Nvidia’s expectations of $20 billion in CPU revenue this year as a sign that the company is expanding its role inside AI data centres.
CPUs are the general-purpose processors that help coordinate workloads.
GPUs do the heavy lifting for AI, but CPUs, networking and software increasingly determine how efficiently the entire system works.
If Nvidia can bundle CPUs, GPUs, networking and software into one tightly connected platform, switching away from it becomes harder for customers.
A cloud provider would not simply be swapping one chip for another; it could be ripping out part of the operating system of its AI factory.
Zourmpanos argues that Nvidia’s broader platform “increases barriers to entry” because competitors are no longer fighting just a chip company but an ecosystem.
What the numbers show?
Wall Street is broadly on board with the bullish view.
TipRanks data cited in the report shows Nvidia with a Strong Buy consensus rating, based on 39 Buy ratings, one Hold and one Sell.
The cited average 12-month price target of $301.29 implies gains of just under 40% from the share price used in that analysis.
That upside may look surprising after Nvidia’s huge run. But the bullish case rests on the idea that investors are still valuing the company too narrowly.
There are risks as AI spending could slow, or customers may push harder on price.
Regulators may scrutinise Nvidia’s dominance as cloud companies are investing in their own silicon to reduce dependence on outside suppliers.
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