The rise of artificial intelligence (AI) and the rapid development we’re seeing in this space is nothing short of astounding. People with the foresight to identify the right tech stocks, like Nvidia (NASDAQ: NVDA) a few years ago, have made themselves fortunes. While there are several manufacturers of graphics processing units (GPUs), Nvidia is leading the charge by delivering GPUs perfectly aligning with AI technology. The surging demand in the data centre segment has seen shares of the U.S. tech stock soar.
As of this writing, the California-headquartered tech giant boasts a massive US$3.25 trillion market capitalization. The growing demand has improved the company’s financial performance, driving its share prices up by over 1700% from five years ago. The advent of DeepSeek, potential reductions in spending on AI, and margin pressures have slowed the uptick, but the long-term outlook remains solid for what’s becoming one of the fastest-growing industries.
Being ahead of the pack makes Nvidia an excellent choice for many. Combined with new product launches, the company looks determined to solidify its place as a leader in the AI space.
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Massive data centre growth
The last few quarters have seen Nvidia deliver incredible growth, with its revenue flying high. The third quarter of fiscal 2024 saw its revenue grow by 94% year over year, thanks largely to the adoption of its AI platform. The company’s data centre business reported record sales, crossing $30 billion in revenue from the segment, reflecting a 112% year-over-year growth.
Despite a slow down in its share price growth, business is booming. The demand for Nvidia’s H200 infrastructure is strong due to the platform’s ability to deliver a good foundation to meet the needs of AI infrastructure.
Its data centre business is not the only thing benefiting the company so much. Nvidia’s gaming segment is picking up pace again. Innovations in the AI space have allowed the company to revitalize its RTX products. The launch of its GeForce RTX AI PCs will likely deliver another strong injection of growth in the coming quarters.
A Canadian AI player
When you hear about investing in technology, you typically hear people abuzz about U.S.-based companies. However, Canada has a few players in this space that might be worth your time as an investor. While not nearly as exciting a company as Nvidia, OpenText (TSX: OTEX) is a solid holding to consider for anyone who wants to use the AI-powered momentum to their advantage.
OpenText is one of Canada’s largest software companies that is poised for substantial growth this year. The company’s strategic moves in AI and cloud computing are two massive moves that will drive the change. These key drivers will most likely result in plenty of capital gains for investors who get its shares right now.
The second quarter of fiscal 2025 saw it report over $1.3 billion in revenue, reflecting an over 13% year-over-year decline. However, revenues were down by just under 5% if you adjust for the divestiture of AMC. The Titanium X platform and its focus on AI will be the key to its growth in the coming months.
The revolutionary platform integrates security features, AI, and cloud computing to help businesses improve agility and resilience in a changing business environment. OpenText’s range of solutions will give it the ability to get more enterprise clients looking to modernize their businesses. There’s still a little time till its Titanium X launch, slated to happen in the fourth quarter of fiscal 2025.
As of this writing, OTEX stock trades for $40.97 per share, down by around 25% from 12 months ago. However, this might be the perfect time to buy the stock when its share prices are still weak to capitalize on the recovery and growth beyond its previous all-time highs.
