1 Top Chip Stock Ready to Ride Nvidia's AI Tailwinds Higher

Nvidia’s (NVDA) blockbuster earnings report and rosy outlook were music to the ears of its investors, who have pushed its share price into the stratosphere this year.NVDA shares jumped more than 6% in one week after it reported a year-over-year quarterly revenue increase of 101% on Aug. 23, and its stock price has more than tripled (up more than 232%) since the beginning of the year.

For the most recent quarter, Nvidia racked up $13.51 billion in revenue, more than doubling last year's figure and setting a new second-quarter company record. The jump in sales was mostly driven by its data center business, which includes the H100 and A100 chips - two advanced artificial intelligence (AI) chips that are used to build and run AI models and applications.