For as long as the AI arms race has been going on, the question surrounding Nvidia has been: Can it keep up its growth rate? While the resounding answer from most investors has been “No,” Nvidia continues to defy expectations and even provides guidance to back it up. <\/p>\n For next year, Nvidia expects to grow its revenue at a 70% pace. Given how large a company Nvidia is, that’s an incredible projection. There has never been a company as large as Nvidia, let alone half the size, that has grown this rapidly. The market really doesn’t know what to do with the stock, as all of the numbers indicate that Nvidia will be a far larger company than any other U.S. business. However, I know what to do: Buy the stock. <\/p>\n Nvidia is at the heart of the AI arms race and will remain there due to its early lead. Nvidia’s GPUs<\/a> are best in the business, and with a new architecture launching, they will unlock features and capabilities previously unthinkable. While there is some rising competition for custom AI chips, there will always be a place for Nvidia GPUs due to their flexibility and universal nature. This positions Nvidia well to thrive in the coming years and could allow the stock to reach new heights. <\/p>\n But just how far can it go? <\/p>\n Nvidia’s valuation is cheap for its potential <\/p>\n Right now, Nvidia’s stock trades at a very attractive 28 times earnings. <\/p>\n NVDA PE Ratio<\/a> data by YCharts<\/a> <\/p>\n That’s a pretty typical valuation for a big tech stock, but there’s only one problem: Nvidia is no ordinary big tech stock. No other big tech stock is growing as quickly as Nvidia. Its peers, Advanced Micro Devices and Broadcom, trade at 144x and 46x earnings, respectively. <\/p>\n That’s a major mismatch, and there’s really no reason for Nvidia to trade as cheaply as it is, especially considering its guidance for the next fiscal year. <\/p>\n With Nvidia trading at a non-inflated price now, the 70% growth it projects next year could easily translate into stock performance gains. It’s rare that the market hands you an investment that can rise 70% in a year with little chance of failing, but that’s what the market is giving you in Nvidia. While there aren’t any projections beyond next year, Nvidia has told investors it expects global data center capital expenditures to rise to between $3 trillion and $4 trillion by 2030. That means there’s even more upside ahead for Nvidia, and with it having a pretty low starting point, that makes Nvidia the top AI stock pick right now.<\/a> <\/p>\n Even if you already have a healthy portion of your portfolio allocated to Nvidia stock, this is an incredible setup, and I think any investor should consider buying it right now. <\/p>\n Should you buy stock in Nvidia right now? <\/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 10 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn’t one of them. The 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 Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!* <\/p>\n That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don’t miss the latest top 10 list, available with Stock 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 September 22, 2026. <\/p>\n Keithen Drury<\/a> has positions in Alphabet, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Nvidia. Nvidia expects huge growth in the future <\/p>\n
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