Nvidia’s Rise as a Leading AI Company
Nvidia (NASDAQ: NVDA) has experienced a remarkable transformation, closing out 2025 with a price of $186.50 per share and a market cap of $4.5 trillion, up from a split-adjusted price of $14.61 and a market cap of $359.5 billion at the end of 2022. This growth represents over $4 trillion in market cap appreciation within three years, positioning Nvidia as a strong contender to become the most profitable publicly traded company, currently generating $99.2 billion in net income compared to Alphabet’s $124.3 billion.
Nvidia’s success can be attributed to its high profit margins and significant free cash flow, turning over half of its revenue into after-tax profit. The company also spent $36.27 billion on stock buybacks for the nine months ended October 26, 2025. These numbers highlight Nvidia’s efficiency and pricing power, making it a valuable stock in the AI sector that investors are closely watching.
Furthermore, with the introduction of its Rubin semiconductor chip architecture offering efficiency improvements, Nvidia is projected to surpass $500 billion in orders by 2026. If it continues converting approximately 50% of sales into net income, it could be on track to outpace Alphabet in earnings within the next two years.
