Blackwell may be Nvidia's hottest ticket in 2026, but this next option could be even bigger in the long run

Nvidia dominates the AI data center market with its chips and related products.
Blackwell’s latest architecture has been in high demand, and this should continue until 2026.
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Nvidia (NASDAQ: NVDA)has become a giant in the data center world thanks to its ability to enhance the development and use of artificial intelligence (AI). These are the places where AI shines, from training models to using them. AI clients can use graphics processing units (GPUs) from various companies, and some players have even developed their own chips, but Nvidia remains the most powerful.

The AI giant has stayed ahead by getting to market early and regularly updating its chips and architecture. Its latest development is the Blackwell system, which offers a complete ecosystem of products, from chips to network solutions. All of this helped Blackwell generate $11 billion in revenue in its first commercialization quarter, which was the fourth quarter of last year. Demand remains strong, with Blackwell’s data center revenue up 17% in the latest quarter compared to the prior three-month period.

So, there’s reason to believe that Blackwell will be Nvidia’s hottest ticket in 2026, leading to the next update to the Rubin platform, which will be released late next year. All of this is fantastic, but in the long run, the next opportunity may be even greater. Let’s see.

Image source: Getty Images.

As mentioned, Nvidia’s business in the data center market grew, which helped drive revenue to record levels. I’m talking quarter after quarter profits in at least double digits and up to billions of dollars. And Nvidia ended its last fiscal year with triple-digit revenue growth to more than $130 billion.

Given that AI infrastructure spending is on the rise, with Nvidia CEO Jensen Huang even predicting that it will reach $3-4 trillion by the end of the decade, this momentum may continue.

But in time, an opportunity that could be even bigger: telecommunications. Nvidia has just taken its first major step in this area by partnering with the telecom giant Nokia. Under the agreement, Nokia will use a specially designed Nvidia product to upgrade existing 6G base stations – and this Nvidia product will eventually become Nokia’s base station. (These stations are the primary connection point for communication devices.)

This product is Nvidia ARC, an air radio network computer. Featuring a range of Nvidia components, from CPUs to GPUs and network tools, this programmable computer will use artificial intelligence to improve the efficiency and quality of telecommunications.

According to Omdia research, the radio access network (RAN) market, which Nvidia is now targeting, could reach $200 billion by the end of the decade. So, this could be an important market for Nvidia.

In addition, Nvidia’s role in the telecom market should lead to a telecom infrastructure ready to support future AI products that will require high-power connectivity and performance. So, Nvidia is helping to build a system that will support devices running on its GPUs further.

And given Nvidia’s innovation and willingness to expand into new markets, this deal with Nokia could open up additional revenue for Nvidia in the roughly $3 trillion telecom market.

Finally, the telecom market could be huge for Nvidia because the whole world relies on it and it can’t be stopped. Thus, even if other areas of AI slow down at some point in the future, it is likely that AI-based telecommunications infrastructure will continue to evolve. So, Nvidia’s partnership with Nokia not only provides a great opportunity for AI growth, but it can also reduce risk, giving the company and investors some security.

There’s reason to be optimistic about Blackwell, Rubin, and other chip and architecture upgrades that will boost Nvidia’s revenue in the quarters and years ahead. But over time, Nvidia’s move into telecom could be its biggest win.

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Adria Cimino has no positions in any of the mentioned shares. The Motley Fool has a position and recommends Nvidia. The Motley Fool has a disclosure policy.

Blackwell may be Nvidia’s hottest ticket in 2026, but this other option could be even bigger in the long run, originally published by The Motley Fool

Blackwell may be Nvidia’s hottest ticket in 2026, but this next option could be even bigger in the long run

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