Nvidia stock was edging lower on Tuesday, although its recent so-so performance hasn’t stopped investment bank Jefferies from adding the chip maker to its list of highest-conviction picks. Shares slipped 0.

The standout performer in Nvidia's latest results was the rapid adoption of its Blackwell architecture across both data center and gaming applications. Data center customers are embracing Blackwell-based products faster than anticipated, contributing to the majority of Nvidia's $39.1 billion in segment revenue.

Due to their powerful processing speeds, GPUs are now used for a variety of high-power computing tasks, such as training large language models (LLMs) and running AI inference. The GPU market is basically a duopoly at this point,