Nvidia (NASDAQ: NVDA) has become the hottest stock on the market due to its incredible rise thanks to unprecedented demand for artificial intelligence (AI). With the stock recently up around 160% this year, its rise has made many investors a lot of money.

However, if you're going to be an Nvidia investor, there are three things you must know that could affect your perspective on the stock.

Although Nvidia has some software products, it's not a software company. Its primary product is its graphics processing units (GPUs), which enable its users to train AI models. Because GPUs can process multiple calculations in parallel, they are effective at complex computing tasks. Combine that with the ability to hook hundreds or thousands together, and it makes sense that Nvidia's GPUs are flying off the shelf.

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Source Fool.com