Nvidia (NASDAQ:NVDA) stock is pretty much flat over the past month. But for a UK-based investor, returns may still look slightly different once currency movements are factored in. With the pound rising around 1.5% against the US dollar over the period, sterling-based returns would have been marginally weaker — even though the underlying share price barely moved.

Interestingly, Nvidia — the kingpin of the AI revolution — has actually lacked momentum over the past six months. The market wants to be bullish, but there are a few concerns holding it back. This includes the threat of clients reducing their dependence on Nvidia’s GPUs — maybe moving to application-specific chips (ASICs) — and a general slowdown in the AI boom.

So, is it still worth considering as an investment opportunity? In my opinion absolutely.

Part 1: Hardware demand

AI is becoming more and more capable. I’ve actually started using Claude by Anthropic and it’s incredibly impressive. It’s re-coded my soft drinks website (Sumacqua) and it cost me nothing at all. Before AI, it would have taken me hours or cost me a fortune.

And as these LLMs get better and better, the demand is just going to keep growing for them. While they will get more efficient, they’re invariably going to need a huge amount of infrastructure, and that’s where Nvidia’s GPUs come in. They’re the building blocks of data centres and AI.

If you’ve been following the market, software companies have been hammered recently because advanced AI tools — including assistants developed by Anthropic — can increasingly perform tasks that once required expensive, specialised software. As these capabilities improve, investors are questioning how defensible some traditional software business models really are.

Hardware on the other hand doesn’t have that issue.

Part 2: A piece of every pie

Nvidia has exposure to far more than just selling chips for AI (and gaming, which was its original focus). Thanks to exceptional cash generation, it has steadily invested in a wide range of businesses across the AI and robotics ecosystem. That means it doesn’t simply supply the hardware powering innovation — it often has a financial stake in the companies building the future too.

These strategic investments span areas such as autonomous machines, data infrastructure, healthcare AI, and advanced robotics. The approach broadens Nvidia’s growth opportunities while strengthening its influence across emerging technologies. By backing promising innovators early, the company effectively gives itself multiple avenues for long-term expansion beyond its core semiconductor business. Many of these companies also use the funding to buy Nvidia’s GPUs.

The bottom line

Risks exist, of course. There’s the aforementioned threat that demand will move towards ASICs and that AI could see some demand pullbacks. However, I feel that risk is overdone, especially when the company is only trading at 24 times forward earnings — hardly pricey. It also boasts a pristine balance sheet.

Personally, I see Nvidia and SpaceX being the biggest companies in the world in the next 10 years. It’s hard to look past it and I feel it’s worth considering.