The AI Revolution: Why Nvidia is the Stock to Beat
In recent years, stock splits have experienced a resurgence in popularity. Companies with strong growth and solid financials are choosing to split their shares, making them more accessible to investors. One such company that stands out from the rest is Nvidia (NASDAQ: NVDA). With its unparalleled dominance in the field of artificial intelligence (AI), Nvidia has become the go-to stock for investors looking to capitalize on the AI revolution.
A Leader in AI Technology
Nvidia’s success can be attributed to its forward-thinking CEO, Jensen Huang. His ability to anticipate the next big thing and design solutions to meet that need has been instrumental in the company’s growth. From pioneering the graphics processing unit (GPU) to accelerating supercomputing, Nvidia has consistently pushed the boundaries of innovation.
Financial Results Speak for Themselves
Nvidia’s financial results are a testament to its success. The company generated record revenue of $30 billion in the fiscal 2025 second quarter, with a year-over-year surge of 122% and a sequential increase of 15%. Profits also soared, with diluted earnings per share (EPS) of $0.67, representing a 168% increase.
A Growing Market
The AI market is estimated to be worth $1.3 trillion by 2032, with some estimates suggesting it could reach as high as $37 trillion. As the leader in AI technology, Nvidia is poised to capitalize on this growing market. With new use cases being developed and the bugs being worked out, the best AI-related gains are yet to come.
A Compelling Case for Investment
While some may argue that Nvidia’s stock is exorbitantly expensive, analysts’ consensus estimates suggest that the company will generate EPS of $4.05 for its fiscal 2026. Based on the stock’s closing price, this works out to about 33 times forward earnings, which isn’t much more expensive than the multiple of 30 for the S&P 500.
A Premium Stock Worth Considering
Nvidia’s growth is far from over, and the addressable market for AI continues to grow. With Wall Street expecting the company to grow its profits by 52% annually over the coming five years, Nvidia’s stock is worthy of a premium. Add to that the company’s history of innovation and its forward-thinking CEO, and you have a compelling case for investment.
Don’t Miss Out on This Opportunity
If you’re worried that you’ve already missed your chance to invest in Nvidia, think again. With its strong financials, growing market, and innovative technology, Nvidia is a stock worth considering. Don’t miss out on this opportunity to capitalize on the AI revolution.
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