Image source: NVIDIA <\/p>\n
Let\u2019s be honest \u2014 most of us missed the boat on Nvidia (NASDAQ: NVDA). And by the time we realised just how vital graphics processing units (GPUs) would become to artificial intelligence (AI), the share price had already soared into the stratosphere.<\/p>\n
Over the past five years, the stock has climbed almost 1,600%. In the last six months alone, it\u2019s up almost 50%, adding over $1.5trn to its market value. It\u2019s now the most valuable company in the world, overtaking Microsoft and Apple in June.<\/p>\n
I have exposure to the stock through several ETFs and investment trusts, so I didn\u2019t entirely miss out on the action. But I certainly made nowhere near the gains I would have had I bought individual shares. Which makes me wonder, how did Nvidia get here, and what stock could be next?<\/p>\n
The numbers behind the hype are jaw-droppingly impressive. For the fiscal year ending January 2025, revenue reached $130bn, a staggering increase from $27bn just two years ago. Net income exploded from $4.3bn in 2022 to more than $70bn this year. And its margins are enormous \u2014 a return on equity of 115% and gross margins consistently above 70%.<\/p>\n
Yet despite the parabolic growth, I don\u2019t think it\u2019s entirely overvalued yet. In fact, I still think it\u2019s worth considering as a long-term investment. It\u2019s a world-class company with room to expand further and the global AI arms race is just getting started \u2013 with Nvidia at its core.<\/p>\n
Realistically, though, the biggest gains have already been made. Buying now means betting on continued dominance that may already be priced in, which is a risk. The stock trades at a price-to-earnings (P\/E) ratio of 45 \u2013 not outrageous considering its growth, but not cheap either.<\/p>\n
So where should investors look if they want to catch the next killer growth stock before it becomes a trillion-dollar giant?<\/p>\n
One company on my radar is SymphonyAI, a private US firm reportedly preparing for a Nasdaq IPO later this year. It\u2019s not yet listed, but when it does go public, I\u2019ll be watching closely.<\/p>\n
Founded by billionaire Romesh Wadhwani, it specialises in applying AI to specific industry verticals \u2013 retail, finance, manufacturing, and healthcare. It doesn\u2019t build chips like Nvidia, but it builds the enterprise software that helps businesses harness AI to improve decision-making and productivity.<\/p>\n
Unlike many AI startups, SymphonyAI already has real revenues and customers. Its retail division serves over 1,200 brands, while its industrial arm works with giants like Nestl\u00e9 and ArcelorMittal.<\/p>\n
While financials are still private, it reportedly generates hundreds of millions in annual revenue and is growing fast. If the IPO goes ahead this autumn, it could be one of the most closely watched tech listings of the year.<\/p>\n
Nvidia\u2019s success was powered by timing, technology, and a growing reliance on data. It may still reward shareholders but the days of 10x returns are likely behind us.<\/p>\n
SymphonyAI might never reach Nvidia\u2019s heights but it could offer early-stage exposure to enterprise AI \u2013 the next leg of this growth story.<\/p>\n
If the valuation is right, it could turn out to be a once-in-a-decade opportunity.<\/p>\n
The post I missed Nvidia \u2013 could this be the next big US growth stock?<\/a> appeared first on The Motley Fool UK<\/a>.<\/p>\n More reading<\/p>\n Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple, Microsoft, and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.<\/a><\/p>\n Motley Fool UK 2025<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: NVIDIA Let\u2019s be honest \u2014 most of us missed the boat on Nvidia (NASDAQ: NVDA). And…\n","protected":false},"author":2,"featured_media":41526,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,36550,2291,36549,105],"class_list":{"0":"post-41525","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-au","12":"tag-australia","13":"tag-growth-stock","14":"tag-nvidia","15":"tag-stock-trades","16":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/41525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=41525"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/41525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/41526"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=41525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=41525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=41525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}