Nvidia Soars as AI Push Signals Continued Growth Potential
The past few years have been undeniably profitable for Nvidia (NASDAQ: NVDA) investors. The stock price has surged more than sevenfold over the past two years, and today, it topped the charts as the world’s most valuable company in terms of market cap. The stock was up as much as 4.7% Wednesday morning. At 12:32 p.m. ET, the stock was still up 4.1%.
The rise of artificial intelligence (AI) has propelled Nvidia’s exceptional performance, and a new U.S. government initiative demonstrates that there is still significant growth ahead.
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Government Initiative Boosts AI Infrastructure
In an announcement yesterday, the Trump administration unveiled Stargate, a new project aimed at strengthening AI infrastructure in the U.S. President Trump shared that this venture will involve investments from Oracle, OpenAI, and SoftBank, totaling up to $500 billion over the next four years. This initiative emphasizes enhancing the number of American data centers and the energy required to power them.
Several companies have been named as “key initial technology partners” for the project, with Nvidia, Microsoft, and Arm Holdings among the notable beneficiaries.
Nvidia has been at the forefront of developing the graphics processing units (GPUs) that support most AI systems. These advanced chips are crucial for the data centers that house AI models. Currently, Nvidia holds an impressive 98% market share in the data center GPU sector for both 2022 and 2023. Predictions indicate that it will continue to maintain its dominant position into 2024.
Some investors might think they’ve missed their chance to buy Nvidia since it is now the world’s most valuable company. However, recent developments suggest otherwise. The stock currently trades at just 32 times next year’s projected sales, a surprisingly attractive price given the company’s vast growth potential.
This analysis indicates that Nvidia stock remains a strong buy opportunity.
Is Now the Right Time to Invest in Nvidia?
Before jumping into Nvidia stock, consider the following:
The Motley Fool Stock Advisor analyst team has recently identified their picks for the 10 best stocks to buy right now, and Nvidia is notably absent from this list. The stocks included may offer significant returns in the coming years.
For context, back on April 15, 2005, when Nvidia was recommended, a $1,000 investment would be worth $863,081 today!
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Danny Vena has investments in Microsoft and Nvidia. The Motley Fool also holds stakes in and recommends Microsoft, Nvidia, and Oracle. The Motley Fool’s recommendations include long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool maintains a disclosure policy.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
