There’s a whole host of artificial intelligence (AI) stocks on the market right now, ranging from companies that are all-in on AI to those that are only loosely tied to it. There are also more notable names coming soon. Anthropic — the developer of the Claude large language model (LLM) and OpenAI — the developer of ChatGPT — will likely go public before 2026 is over.
However, regardless of how those IPOs pan out, if I could only own one AI stock, the one I’d pick is Nvidia (NASDAQ: NVDA). It’s been the go-to AI investment since the AI arms race began in 2023, and I think now is as good a time as ever to buy it. Why? Because Wall Street and the market aren’t giving the company much credit for what’s coming over the next few years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia.Continue »
Nvidia is primed to cash in on major growth
Nvidia’s graphics processing units (GPUs) have been the go-to computing units in the AI industry since the beginning of the AI megatrend.
While it has competitors making both GPUs and custom AI chips, Nvidia has established a reputation for delivering high-performing products, and its widely used CUDA platform has helped it hold its position as a nearly universal AI computing platform. Its wide moat should keep it at the top of the AI computing unit leaderboard, and beyond that, Nvidia’s latest forecasts make the stock look like a screaming buy.
During Nvidia’s Q2 earnings call, CFO Collette Kress made a major announcement: Nvidia expects 70% revenue growth during its fiscal 2028, which will end in January 2028. Wall Street analysts had been forecasting a far slower growth rate. Nvidia noted that demand for its hardware still outstrips supply, and with the top five AI hyperscalers projected to spend $1.3 trillion on data center capital expenditures next year, those giants continue to drive the chipmaker’s growth.
Additionally, Nvidia has long projected that annual AI spending on data centers will reach $3 trillion to $4 trillion by 2030. With the hyperscalers boosting their outlays each year, I think this is becoming a reasonable projection.
Yet the market isn’t treating Nvidia’s stock like it expects those forecasts to pan out.
None of this growth is priced into Nvidia’s stock
Nvidia currently trades at 24 times forward earnings, which is a pretty cheap valuation considering the company’s projected growth.
