Nvidia (NVDA +1.90%) shares have soared 1,800% over the past five years thanks to the company's dominance in the artificial intelligence (AI) chip market. And this leadership has translated into enormous gains in earnings, with revenue and net income rising in the triple digits and reaching records in the most recent quarter.
But now it's fair to question whether this high demand for tools to power AI -- from Nvidia's chips to its software and platforms -- will last. Nvidia has grown dependent on demand from companies investing in AI and seeking capacity to drive AI projects. Nvidia's data center revenue made up more than 80% of total revenue in the most recent quarter. Well, one particular statistic offers us an answer.
Talking about AI
A little less than a decade ago, most companies weren't talking about AI during their earnings calls, a key moment to speak about important projects and long-term prospects. But this has changed drastically, according to data compiled by Statista.
The chart, below, shows that among companies in the Russell 3000 index, more than 16% mentioned AI during earnings calls last year, up from just under 10% the previous year. And this number has soared from less than 1% back in 2015.
Data source: Statista.
This is positive because growth in these mentions has almost steadily increased, yet the current level of companies talking about AI leaves plenty of room for growth. And if more companies are talking about AI, that indicates more companies may be launching AI projects, and for this, many of them may turn to chip leader Nvidia.
All of this indicates Nvidia's revenue growth may be far from over, and that should lead to further share performance, too. For investors, this means it isn't too late to get in on shares of this AI chip leader. Whether Nvidia stock continues to rise or takes a pause, it still has what it takes to advance over the long haul -- along with demand for AI products and services.
