By Scott Nations
Publication Date: 2026-04-08 18:19:00
Few stocks capture the imagination of investors the way Nvidia (NVDA) does. The numbers alone are impressive: up more than 1,200% since October 2022, now the largest component in the S & P 500, and the only stock with a market capitalization above $4 trillion. To put that in perspective, Nvidia is worth nearly as much as Broadcom , Meta Platforms , and Tesla combined. Yet, even after this historic run, Nvidia trades at a forward price-to-earnings ratio of roughly 22, shockingly reasonable given that it’s leading the largest technological transformation in decades — the artificial intelligence revolution — while still growing earnings per share by 60%. Investors love Nvidia for the same reason tech companies depend on it: The company’s chips are at the heart of the AI boom. Its graphics processing units, or GPUs — particularly the advanced Blackwell architecture and upcoming Rubin processors — deliver unmatched performance in training neural networks and powering large language models. That dominance has created a near-impenetrable moat. Today, Nvidia controls 85% of the market for AI accelerators, the chips that handle the specific demands of machine learning. Cloud titans are spending tens of billions on Nvidia hardware to fuel their data centers. Competing products from AMD and Intel exist, but none threaten Nvidia’s leadership in the space. Yet, for all its strength and scale, the most intriguing opportunity in Nvidia right now may not be its stock — it’s…
