Why AI should be on the radar of every investor

Nvidia’s latest earnings were an absolute knockout. But the real story isn’t just about the numbers, it’s about the revolution behind them.

AI is no longer hype; it’s a force reshaping industries, and if you’re not invested yet, you’re late to the party – but not too late.

Revenue for Nvidia surged by 94% in just one year, and this isn’t a one-off spike. It’s driven by unprecedented demand for AI technologies that are now powering everything from enterprise cloud systems to generative AI applications.

Major players like Microsoft, Oracle and OpenAI are snapping up Nvidia’s latest AI chips, dubbed Blackwell, to drive their next-gen services. The message is clear: AI demand is insatiable, and it’s only going to grow.

The beauty of the AI boom lies in its reach. It’s not confined to tech giants or niche startups, instead, it’s permeating every sector. Healthcare is leveraging AI for diagnostics and drug discovery, financial services are optimising risk management and fraud detection, and even agriculture is getting smarter with AI-driven crop analytics.

We’re witnessing the early stages of what’s likely to be a decades-long cycle of innovation and disruption. AI’s integration into daily life means every business, from family shops to multinational corporations, will need to adopt AI tools or risk obsolescence. And this is precisely why investors should take notice.

Nvidia is just the beginning

Nvidia’s dominance in AI chips is undisputed, but focusing solely on one company misses the broader opportunity. There’s an entire ecosystem at play here. Chipmakers like AMD and Qualcomm are ramping up their AI capabilities.

Cloud service providers such as Amazon Web Services and Google Cloud are embedding AI into their offerings. And let’s not forget the software giants building platforms and tools to make AI accessible to the masses.

Investing in AI isn’t just about picking the right chipmaker. It’s about understanding the entire value chain – from semiconductors to data centres to software applications. This layered approach allows investors to benefit from multiple points of growth as the AI wave builds momentum.

Generative AI, popularised by tools like ChatGPT, is the latest frontier. But what many don’t realise is that we’ve only scratched the surface of its potential. Beyond chatbots and text generation, generative AI is making waves in design, coding, music production and even filmmaking.

It’s democratising creativity and pushing boundaries in ways that were previously unimaginable.

The corporate world is already integrating these tools to boost productivity and cut costs. Entire workflows are being reimagined, and businesses that adopt these technologies are poised to gain a competitive edge. For investors, this translates into a wealth of opportunities across industries adopting AI-driven innovations.

Sceptics will argue that AI is another bubble, but the underlying fundamentals suggest otherwise. Unlike past tech booms driven by speculative enthusiasm, AI is solving real-world problems and delivering measurable value.

The adoption curve is steep, and the barriers to entry for new players are significant, which means established leaders in the space are likely to continue benefiting.

For investors, the key is diversification. Don’t put all your chips on one company, no matter how strong its current position. Instead, build a portfolio that captures the breadth of AI’s impact. This might include chipmakers, cloud providers, software developers, and even companies in traditional industries that are early adopters of AI technologies.

Of course, no investment comes without risk. The AI space is competitive, and regulatory scrutiny is a looming concern.

Data privacy, algorithmic transparency, and ethical considerations are all challenges that the industry must address. But these challenges also present opportunities for companies that can lead the way in responsible AI development.

Investors should be vigilant but not deterred. The long-term potential of AI far outweighs the short-term risks, especially for those with a diversified approach.

Let’s be clear: AI is not a trend – it’s a paradigm shift. As Nvidia’s blowout quarter shows, the demand for AI infrastructure is only accelerating. For investors, this is a call to action. The AI boom is just getting started, and the smart money is already moving in.

If you’re serious about future-proofing your portfolio, now is the time to embrace AI.

Nigel Green is the CEO of deVere Group, an independent global financial consultancy.