We just covered the 10 Best Pick and Shovel AI Stocks to Buy for the Long Term. Nvidia Corp (NASDAQ:NVDA) ranks #7 (see 5 Best Pick and Shovel AI Stocks to Buy for the Long Term).
Short Interest: 1.2%
Nvidia shares were down about 1.6% despite beating quarterly estimates. It’s becoming predictable: Nvidia keeps beating estimates, and yet the market does not care much as its expectations are extremely high. But this weakness could be a long-term buying opportunity.
Nvidia Corp (NASDAQ:NVDA) remains the clear winning pick-and-shovel name in the AI revolution. It makes high-performance GPUs used to train and run large AI models, and since nearly every major AI company depends on this compute power, demand has remained extremely strong.
This tight supply-demand balance has led to a GPU shortage. Data shows GPU availability is at its lowest level since late 2023 and early 2024. As a result, Nvidia Corp (NASDAQ:NVDA) has strong pricing power and high demand visibility. The company is also shifting to a one-year product release cycle, down from two years, to better keep up with rapid demand growth and competition.
Another indicator of strong demand comes from Foxconn, a key Nvidia Corp (NASDAQ:NVDA) manufacturing partner responsible for a large share of its AI hardware production. In March 2026, Foxconn reported a sharp revenue increase, with monthly sales rising about 10% from January levels, driven by strong momentum from new product launches. This is widely seen as an early signal of ramping production for Nvidia Corp’s (NASDAQ:NVDA) next-generation systems.
The upcoming Vera Rubin platform, expected to launch in the second half of this year, is also progressing well. Supplier data suggests production ramp-up is on track, reinforcing expectations that Nvidia Corp’s (NASDAQ:NVDA) next major product cycle is executing smoothly.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2026 investor letter:
“At the same time, the angst around an AI bubble and the future return from the vast infrastructure investment spend has seen enthusiasm wane for the immediate beneficiaries. Take NVIDIA Corporation (NASDAQ:NVDA) for example, in their most recent earnings report during the quarter they increased revenues in excess …..(Click Here to Read the Letter in Detail).”
While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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