Why NVIDIA (NVDA) Is Turning Its AI Hardware Lead Into an Infrastructure Moat

NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to buy with wide moats.

The latest moat-relevant update came on May 7, 2026, when NVIDIA Corporation (NASDAQ:NVDA) and IREN announced a strategic partnership to accelerate the deployment of up to 5 gigawatts of NVIDIA DSX-aligned AI infrastructure across IREN’s global data-center pipeline. The companies said future deployments are expected to focus on IREN’s 2-gigawatt Sweetwater campus in Texas, which is planned as a flagship deployment for NVIDIA’s DSX architecture. As part of the deal, IREN also issued NVIDIA a five-year right to purchase up to 30 million shares at $70 per share, giving NVIDIA the right to invest up to $2.1 billion, subject to conditions.

NVIDIA (NVDA): 10 Best Stocks to Buy for the Next 15 Years

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The update fits the wide-moat angle because NVIDIA’s advantage increasingly extends beyond selling GPUs to encompass a broader AI infrastructure stack. The companies framed DSX around accelerated compute, AI factories, networking, software, power, and operations, which reinforces NVIDIA’s role as an architecture provider rather than just a component supplier. Morningstar also assigns NVIDIA a wide economic moat, citing its leadership across GPUs, hardware, software, and networking tools needed for AI workloads.

NVIDIA Corporation (NASDAQ:NVDA) develops graphics processors, accelerated computing platforms, AI infrastructure, networking products, software, and related technologies for data centers, gaming, professional visualization, automotive, robotics, and other markets.

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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