AMD CEO Says We’re Only in Year 2 of 10-Year AI Build Out: Here’s the Stock That Profits Most

AMD (NASDAQ:AMD | AMD Price Prediction) CEO Lisa Su told the Axios AI+ Summit last week that “We’re only in year two of a ‘massive ten-year cycle’ of rapid AI advancements and infrastructure build-out.” If that timeline holds, the company best positioned to compound through the remaining eight years is NVIDIA (NASDAQ:NVDA), and one line item from its latest quarter shows why.

The Number

NVIDIA generated $62.31 billion in Data Center revenue during Q4 FY2026, up 75% year over year, according to the 8-K filed February 25, 2026. That single segment was larger than the company’s entire reported revenue base of $44 billion just three quarters earlier and pushed total Q4 revenue to $68.13 billion, a 73.2% annual increase.

Since the advent of ChatGPT in late-November 2022, NVIDIA’s Data Center revenue grew from a minuscule $3.6 billion to $62.3 billion today, a 158.66% CAGR. If we’re only in Year 2 of the AI build out, NVIDIA’s continued growth over the next eight years is virtually assured.

What It Means

Data Center now operates at a scale that dwarfs the rest of NVIDIA’s franchise. Within the segment, Compute contributed $51.33 billion and Networking added $10.98 billion, up 263% year over year, evidence that NVLink and Spectrum-X are monetizing alongside Blackwell GPUs rather than as an afterthought. Non-GAAP gross margin held at 75.2%, and free cash flow reached $34.90 billion in the quarter alone. The launch of ChatGPT in late 2022 reframed NVIDIA from a cyclical chip vendor into the infrastructure layer of the AI economy, and the Data Center print quantifies that transition.

Market Reaction

NVDA closed at $195.95 on the day of the filing. The stock closed Friday, April 24, 2026, at $208.27, with a 95.73% one-year return and a 670.17% gain since April, 2023.

Strategic Outlook

Management’s Q1 FY2027 guidance of roughly $78.0 billion in revenue, plus or minus 2%, excludes any China Data Center compute contribution and implies sequential acceleration off the $68 billion base. Capital allocation confirms the conviction: NVIDIA returned $41.1 billion to shareholders in FY2026 and still has $58.5 billion remaining under its repurchase authorization. Supply commitments stand at $95.2 billion, with multi-year cloud R&D agreements totaling $27.0 billion. Jensen Huang framed it bluntly: “Our customers are racing to invest in AI compute, the factories powering the AI industrial revolution and their future growth.” The Meta (NASDAQ:META) partnership covering millions of Blackwell and Rubin GPUs, plus a 5-gigawatt CoreWeave (NASDAQ:CRWV) commitment by 2030, anchors the demand pipeline well past the fiscal year.

Bottom Line

If Su is right that the cycle is roughly 20% complete, NVIDIA is compounding off a Data Center run rate approaching a quarter-trillion dollars annually with 75% non-GAAP operating margins and a forward P/E of 26. The next catalyst is Q1 FY2027 results, when investors will see whether the $78 billion guide proves conservative.