Nvidia's AI Dominance and Untapped Revenue Potential: Why This Under-Covered Giant is a Must-Own Growth Stock

Nvidia's transformation into the cornerstone of the global AI infrastructure has been nothing short of revolutionary. In fiscal 2025, the company's Compute & Networking segment-anchored by AI and data center solutions-generated $116.2 billion in revenue, accounting for 89% of total revenue, according to Tickergate's revenue breakdown. This segment's explosive growth, driven by demand for Blackwell AI supercomputers and Hopper GPUs, has outpaced even the most optimistic projections. Yet, despite this dominance, the AI segment remains under-covered by analysts relative to its growth potential, creating a compelling case for investors seeking exposure to the next phase of the AI revolution.

The AI-Driven Revenue Engine

Nvidia's Compute & Networking segment is no longer just a revenue line-it is the engine of the company's future. In Q4 FY2025, data center revenue surged 93% year-over-year to $35.6 billion, with Blackwell alone generating $11 billion in its first quarter, as reported in a Futurum Group Q4 review. This segment's success stems from its role in powering AI infrastructure for hyperscalers like AWS, Google Cloud, and Microsoft Azure, as well as sovereign AI initiatives in the EU and Middle East. For context, the Graphics segment, which includes gaming GPUs, contributed just $14.3 billion in FY2025, a fraction of the AI segment's output per StockDividendScreener's segment breakdown.

The disparity is even starker when examining growth rates. While the Compute & Networking segment grew 142% year-over-year, the Gaming segment saw a 11% decline in Q4 FY2025, as shown in Nvidia's financial results, due to supply constraints. Meanwhile, the Automotive segment, though growing at 72% YoY, remains a niche player at $1.7 billion for the full year, according to Energy DM's automotive analysis. These figures underscore Nvidia's strategic pivot to AI and highlight the segment's unparalleled scalability.

Analyst Sentiment: Bullish on AI, Cautious on Risks

Analyst coverage of Nvidia has been overwhelmingly positive, with 33 analysts covering the stock in Q3 2025 and 19 of 43 ratings labeled as bullish, per Nasdaq's analyst breakdown. The focus has rightly centered on the AI segment, with Bank of America's Vivek Arya predicting Nvidia will maintain an 80–85% market share in AI accelerators for the next 18 months, as noted by Data Center Frontier. However, the broader market has yet to fully price in the segment's long-term potential.

For instance, the sovereign AI business, which partners with governments to build AI infrastructure, is projected to exceed $20 billion in 2026-more than double its 2025 revenue-according to a Motley Fool analysis. Yet, this growth is often overshadowed by short-term concerns like margin pressures and geopolitical headwinds (e.g., export restrictions in China). While these risks are valid, they fail to account for the $3–$4 trillion AI infrastructure opportunity outlined by CEO Jensen Huang in an ImpartPad article, which dwarfs current revenue streams.

The Under-Covered Opportunity

Despite the AI segment's dominance, it remains relatively under-covered compared to its revenue and growth potential. While 43 analysts provided ratings in Q3 2025, their focus has skewed toward overall company performance rather than dissecting the AI segment's unique drivers, as highlighted in a Benzinga roundup. This is evident in the lack of granular analyst estimates for non-AI segments like Gaming or Automotive, which are often treated as ancillary to the AI story per Yahoo Finance estimates.

The under-coverage is further amplified by the segment's complexity. Unlike traditional GPU markets, Nvidia's AI business spans full-stack solutions-from Blackwell hardware to software ecosystems like CUDA-and strategic partnerships with cloud providers. These layers create a moat that competitors like AMD and Intel struggle to replicate, yet few analysts have quantified the long-term value of this ecosystem.

Why This Makes Nvidia a Must-Own Growth Stock

Nvidia's AI segment is not just a growth engine-it is a defensible monopoly in the making. The company's 75–85% market share in high-performance data center GPUs, according to a Monexa analysis, combined with its leadership in networking technologies like NVLink and Spectrum-X, ensures it will remain the go-to provider for AI infrastructure. Moreover, the $100 billion investment in OpenAI was covered in Reuters coverage, and expansion into robotics and autonomous vehicles position Nvidia to capture cross-sector AI demand.

For investors, the under-coverage of the AI segment represents a mispricing opportunity. While the market acknowledges Nvidia's dominance, it has yet to fully appreciate the $400 billion AI revenue potential by 2028 cited in a TechRadar piece referencing Morningstar. This gap between current valuations and future expectations creates a compelling risk-reward profile, particularly as AI adoption accelerates across industries.

Conclusion

Nvidia's AI business is the linchpin of its $130.5 billion revenue machine in 2025, yet its under-coverage by analysts suggests the market is still catching up to the magnitude of its potential. With Blackwell, sovereign AI, and strategic partnerships driving a multi-trillion-dollar infrastructure shift, investors who position themselves now stand to benefit from a sector that is both transformative and underappreciated. In an era where AI is the new electricity, Nvidia is not just a stock-it is a foundational investment.