By Geoffrey Seiler
Publication Date: 2025-12-16 15:45:00
Nvidia continues to be a top stock to own heading into 2026.
The evidence is piling up that investors should buy Nvidia (NVDA +0.99%) ahead of 2026. Let’s look at three reasons to own the stock heading into the new year.
1. Nvidia is showing no let-up in growth
Nvidia’s stock has been the biggest artificial intelligence (AI) winner over the past few years because of the incredible growth the company has achieved. Last quarter, its revenue soared 62% to a whopping $57 billion. Even more impressive is that its revenue is up more than threefold over the past two years and nearly tenfold in the past three years.
By and large, Nvidia’s growth is a direct result of the ongoing AI infrastructure buildout. Approximately 90% of its revenue comes from its data center segment, where its graphics processing units (GPUs) are used to help train large language models (LLMs) and run AI inference. Notably, its data center networking portfolio has been growing even faster than its chips, with revenue surging 162% last quarter to $8.2 billion.
Image source: Getty Images.
As such, Nvidia’s growth is directly tied to the ongoing data center buildout. On that end, the company is in good shape to keep seeing revenue climb. The big three cloud computing companies — Amazon, Microsoft, and Alphabet — have all indicated that they will spend aggressively next year on AI infrastructure to try to keep up with rising demand. All three companies have indicated they are currently…