Nvidia's Quarter Shows Why It's the Best Tech Stock to Beat Inflation

Inflation is on pace to be its highest in 40 years, driven by consumer demand and higher supply costs. Companies have seen raw-material prices soar over the last year, and not all of them are in the competitive position to pass those higher costs to customers.

Some investors can make the mistake of investing in value traps during periods like this. My preference is to look for companies experiencing robust demand for their products, even if the stocks have higher valuations. No investments are immune from a broad market sell-off, but companies experiencing lots of growth are in a stronger competitive position to outperform the market over time.

Inflation isn't going to stop the increasing amount of data that the world is gathering. This is driving accelerating demand for Nvidia's (NASDAQ: NVDA) advanced graphics processors designed for data centers.

Source Fool.com