By John Ballard, The Motley Fool
Publication Date: 2025-11-12 10:15:00
This top AI stock remains attractively priced for further market-beating returns.
Nvidia (NVDA 3.06%) has been one of the best stocks to ride the artificial intelligence (AI) boom. Its stock has rocketed 1,200% since bottoming out in the 2022 bear market. That performance reflects its dominant position in the chip industry selling powerful graphics processing units (GPUs) to data centers.
Yet despite its run, the reason I can’t stop thinking about the investment opportunity with this amazing growth stock is how much profit Nvidia’s business is generating. Over the last year, Nvidia earned $86 billion in profit on $165 billion of revenue. Further growth in its data center business should drive significant gains for the stock in 2026 based on its current valuation.
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Nvidia’s profitability makes it a solid investment
The consensus analyst estimate calls for Nvidia’s fiscal Q3 revenue to grow 56% year over year. With leading cloud service providers seeing demand for AI cloud services outpacing available compute capacity, Nvidia shouldn’t have any problem selling every chip it makes for the foreseeable future. Early estimates for next year project the company’s revenue growing another 38% to reach $287 billion. This aligns with management’s long-term expectation for data center spending to reach between $3 trillion and $4 trillion by 2030.
This growing demand reinforces Nvidia’s competitive lead in the GPU market. Nvidia’s data center GPUs sell for…