The "Magnificent Seven" group of stocks had an absolutely smashing year in 2023.

All seven of the market's biggest tech stocks outperformed both the Nasdaq Composite and the S 500, and three of the seven stocks doubled last year. However, none performed better than Nvidia (NASDAQ: NVDA), the chipmaker that has asserted itself as the clear leader in the artificial intelligence (AI) revolution. Nvidia's stock jumped 239% last year, and its results explain why.

The company was the clear winner in the early stages of the generative AI boom, as its revenue and profits skyrocketed last year. Revenue jumped 206% in its third quarter from the quarter a year ago, and soaring prices for its in-demand graphics processing units (GPUs) and accelerators have led to bumper profits. Net income on a generally accepted accounting principles (GAAP) basis jumped more than 13 times from $680 million to $9.24 billion, representing a near-50% improvement to its profit margin over the equivalent quarter in the previous fiscal year.

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Source Fool.com