Nvidia's (NASDAQ: NVDA) stock popped up by a dramatic 500% in the past three years. Undoubtedly, much of this recent rally has been fueled by the company's position as a key beneficiary and enabler of the ongoing artificial intelligence (AI) wave.

Nvidia offers a full-stack AI platform, comprising cutting-edge AI-optimized hardware chips, a complete software ecosystem, high-speed networking solutions, and servers to enable clients to build "AI factories," or the essential infrastructure for AI-based outputs (text, images, audio, video). The company's accelerated product release cadence, from two years to one year, also helps it maintain technological superiority against competition.

Furthermore, besides the booming demand from large hyperscale companies, enterprises, and AI start-ups, Nvidia's AI-optimized hardware and software solutions are now increasingly used in new areas such as Sovereign AI (governments building domestic AI capabilities), automotive vertical, and robotics business.

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Source Fool.com