Nvidia makes graphics processing units (GPUs) and the ecosystem that supports their use. GPUs have been the top choice to provide AI processing power ever since the AI arms race kicked off in 2023, and Nvidia’s have been and remain best in class. Its latest-generation Rubin architecture, now shipping to customers, will drive further growth due to its markedly increased capabilities. <\/p>\n However, Nvidia isn’t alone in the space. Other companies make fantastic GPUs, and custom chip designers are partnering with hyperscaler clients to tailor application-specific integrated circuits (ASICs) precisely for their intended workloads. This intensifying competition creates an execution risk for Nvidia. <\/p>\n However, I think it’s still primed to dominate the accelerated computing market, as it’s growing at a faster rate than its GPU competitors, and ASICs by design are useful only for a narrow range of applications. <\/p>\n The AI build-out pie is also getting bigger. This year, the four major hyperscalers alone are expected to spend a whopping $650 billion on capital expenditures. Next year, Nvidia projects that figure will rise to over $1 trillion. By the end of the decade, Nvidia expects $3 trillion to $4 trillion in global annual data center capital expenditures. If its forecasts are right, that creates a massive opportunity for all companies in the space, so Nvidia could lose some market share and still be a fantastic investment. <\/p>\n But why do I think it’s the best AI stock to buy now? It all comes down to valuation. <\/p>\n Right now, Nvidia trades at basically the same forward earnings ratio as the S&P 500. In other words, the stock is being priced as market-average, despite strong growth expected again next year. When next year’s growth is considered, there’s major upside, as it’s unlikely Nvidia will actually trade at that much of a discount to the broader market. <\/p>\n There is major upside ahead for Nvidia, and I think it’s <\/a>the <\/a>best AI stock to buy right now.<\/a> <\/p>\n Should you buy stock in Nvidia right now? <\/p>\n Before you buy stock in\u00a0Nvidia, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Nvidia\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $407,651!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,252,823!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 9, 2026. <\/p>\n Keithen Drury<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. The AI build-out is far from over <\/p>\n
<\/a> NVDA PE Ratio (Forward)<\/a> data by YCharts<\/a>. <\/p>\n