Although Nvidia (NASDAQ: NVDA) may be the world’s most valuable company, I think the stock still has a lot of room to rise. The market may have come to expect a lot from Nvidia, but there is a major growth runway ahead for the stock, and I think it’s among the best buys right now.
I’ve got three reasons Nvidia can continue rising, and all of them add up to make the stock a genius buy right now.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
1. Vera Rubin’s revenue hasn’t even come in the door yet
Nvidia tends to launch a new chip architecture every few years. The upgrades from one generation to the next are incredible, and that’s exactly what we’ll see when the Vera Rubin architecture is implemented, replacing the current Blackwell technology. Rubin chips can run inference 10 times cheaper than a comparable Blackwell chip, and four times less for training. That’s a major upgrade that will unlock new AI capabilities that we haven’t seen yet.
While Nvidia has been hyping this launch, it has recorded no revenue from the platform. However, by the third quarter of this year, Vera Rubin chips will start shipping, and that could unlock a whole new venue of revenue growth for Nvidia. There’s still a lot more ahead for Nvidia, and that makes me bullish as an investor.
2. The data-center build-out trend is set to last for many more years
One item that may be holding investors up are doubts about how long the data-center build-out will last. After all, of Nvidia’s $81.6 billion in Q1 revenue (up 85% year over year), $75.2 billion came from its data-center division. That’s a major concentration, but when this side of the business is booming, Nvidia would be unwise not to pursue it on a full scale. Although there will likely be some slowdown in data-center spending eventually, we’re nowhere near seeing that happen.
One of Nvidia’s largest clients, Alphabet, has already told investors that 2027 capital expenditures will be “significantly higher” than they were in 2026. That shows that the AI build-out will at least extend into 2027, but Nvidia believes there’s even more to come.
Nvidia told investors during its Q1 earnings conference call that 2027 hyperscaler capital expenditures will exceed $1 trillion. By 2030, that figure might to grow to $3 trillion to $4 trillion. That bodes well for Nvidia, and the growth that it would experience if that pans out would be remarkable.
3. The market isn’t pricing in any growth after this year
Right now, Nvidia trades for about 27 times forward earnings.
That means that as long as Nvidia hits growth projections (which it has a long track record of exceeding), it would trade for a mere 27 times trailing earnings, as long as the stock price stays the same. However, with major growth projections like the one Nvidia gave for 2027 capital expenditures, plus revenue boosts from Vera Rubin, I think it’s safe to say that 2027 will be another year of remarkable growth for Nvidia. Even if Nvidia’s growth slows way down to something like 50% year over year, buying a stock that trades at 27 times earnings and is growing that quickly is a no-brainer.
The market is fairly short-sighted and usually only cares about the next year. By buying Nvidia stock now, you’re getting on board a multiyear growth trajectory.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 25, 2026.
Keithen Drury has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
3 Reasons Nvidia Still Has Plenty of Room to Run was originally published by The Motley Fool
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
