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Nvidia makes graphics processing units (GPUs), which are suited for accelerated computing workloads such as AI. AI demand makes up the majority of Nvidia’s business now, and that isn’t likely to change going forward. The biggest concern investors have with Nvidia is how long its growth will last. More and more investors are growing wary\u00a0of all of the AI spending going on<\/a>, and believe that if the AI hyperscalers don’t see an immediate return on investment, they will cease building out their data center footprint.<\/p>\n That’s far from the case, as many of these businesses view this technology as a must-invest area, and it’s far better to spend than underinvest and be left behind. Nvidia projects that annual global data center capital expenditures will rise to $3 trillion to $4 trillion by the end of 2030, so there’s still plenty of growth ahead, at least according to its projections.<\/p>\n However, if you look at how the stock is being valued, the market is only pricing in one year of strong growth, and market-matching growth after that.<\/p>\n Nvidia’s stock is priced at 36 times trailing earnings and 21 times forward earnings. This tells me that the market expects strong growth this year from Nvidia’s stock, but maybe market-matching growth next year. With the S&P 500\u00a0trading for 20.6 times forward earnings, Nvidia doesn’t have much of a premium.<\/p>\n However, if Nvidia’s growth rate continues to impress in 2027, the stock will likely re-adjust its price higher to account for expected growth. Right now, the market hasn’t done that, so there is still an opportunity to get in before it does. Once the market starts hearing capital expenditure projections for 2027, it will realize that Nvidia’s stock doesn’t have any of that growth priced in, and send it higher before the end of the year. <\/a><\/p>\n I have no idea when this will happen this year, but I am confident that a rise is coming, so investors should position themselves accordingly.<\/p>\n Before you buy stock in Nvidia, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $503,268!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,049,793!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 898% \u2014 a market-crushing outperformance compared to 182% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of March 27, 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> Data by <\/a>YCharts.<\/a> <\/p>\n