Nvidia stock analysis as it evolves into a “central bank” of the AI industry

Nvidia stock has jumped and is nearing its all-time high as the company slowly evolves into becoming the central bank of the AI industry, thanks to its huge investments. NVDA jumped to $230, a few points below its all-time high of $236, and this growth may continue as the AI boom continues.

Nvidia is now the biggest AI investor

Jensen Huang has become the biggest investor in the AI industry, with the company using its windfall to invest in the biggest and most promising firms in the sector. 

The company has become the fourth-biggest investor in Intel after BlackRock, Vanguard, and State Street, with a $19.6 billion stake. It has invested in other publicly traded companies like CoreWeave, Nebius, IREN, SpaceX, Lumentum, Coherent, and Synopsys. 

In addition to this, it invested in Mistral AI, Nscale, Firmus, Fireworks AI, Lambda, OpenAI, Anthropic, and Nokia. The company is said to be mulling a $2.5 billion investment in Thinking Machines, a company started by Mira Murati that is building open-source AI models. 

Just this week, it chucked $13 billion in Hugging Face, a company in the open-source sector. 

Nvidia has made other big investment announcements. It will provide OpenAI with the financial backstop in its large data center project in Ohio. This center will use Nvidia chips, a notable thing since OpenAI has developed Jalapeno, its highly competitive chip.

Nvidia has also created a consortium of banks and private credit companies that will provide $500 billion investment in companies in the AI industry. Companies in the AI space will be able to access these funds and buy Nvidia chips.

These announcements, however, have led to concerns about circular investments, a situation where a company invests in its customers, which uses the resources to buy its products. 

READ MORE: Nvidia stock analysis: top reasons why the shares may go parabolic soon

Nvidia has the resources to make these investments

The most recent earnings report showed that the company has the resources it needs to fund these investments. Its most recent results showed that its revenue jumped to $96 billion in the second quarter.

The company predicted that its third-quarter revenue will be $108 billion and that the annual revenue will be over $411 billion. Historically, the company has a record of beating analysts' estimates. This means that its annual revenue will jump to over $420 billion this year.

The company also predicted that its business will continue doing well next year, with the annual figure expected to grow by 70%. Analysts were expecting the company’s growth to be about 40%.

Most notably, the company is highly undervalued, with its forward price-to-earnings ratio of 24, slightly higher than the sector median of 22, and the five-year average of 42.

Nvidia stock price technical analysis

NVDA stock chart | Source: TradingView

The weekly chart shows that the NVDA stock price has been in a strong upward trend in the past few months. It has remained above the ascending trendline that connects the lowest level in April 2025, March 2026, and July this year. 

NVDA stock has remained above the 50-week and 100-week moving averages, a sign that bulls remain in control. It has also remained above the Supertrend indicator.

Therefore, the most likely scenario is where the stock may continue rising, with the next key resistance level to watch being at $250. A move above that resistance will lead to more gains, towards $300.