The following is the best AI stock to buy now.
Excessive advertisements for this AI stock may have been too hot, but do not miss this purchase opportunity excessively.
nvidia (NVDA -5.07%)) In early 2023, I became a poster child for the rise of artificial intelligence (AI). The Data Center chip has created a market in which the data center chip used to train and operate a powerful AI model has a market in which NVIDIA grows inherently not dominant. But like the Internet in the late 1990s, excitement and new ones are sometimes much earlier than reality.
Recently, the market has begun to produce some heat. that Nasdaq composite Technically, the modification is almost 10% off. NVIDIA’s stocks have declined almost 25% since early January.
It can be scary if the stock price falls like this, but I pay attention to investors so that the sale does not let go too far. NVIDIA’s dip has probably created a chance for long -term investors. I have subdivided the reason and method of using this below.
Nvidia is not a bubble
Like the Internet in the late 1990s, over -advertising of new technology can cause bubbles. Some Internet has risen higher before collision when music (overdue advertising) stops. It can be very good in some AI stocks. But NVIDIA is probably not one of them. NVIDIA’s stocks have been very grateful for the last two years, but true business growth has led stocks, not over -advertising. NVIDIA has generated $ 130 billion in sales in the fourth quarter and is still growing to almost 80%.
YCHARTS’s NVDA operating revenue (quarter growth) data
This trend does not stop. Major technology companies that invest in AI data centers, also known as AI HyperScalers, have continued to invest in 2025. According to the report, AI spending can be at the top of the top of $ 300 billion this year alone. It appears on the heel of AI hyperscalers alphabet and MicrosoftIn the most recent imports, cloud demand for AI surpasses the usable cloud capacity. Openai, a major AI developer and producer of CHATGPT, said it delayed product rollout due to lack of GPU chips.
NVIDIA’s AI growth seems to be true and remaining. This is not the time for stock prices to trade at a 38 -price price (P/E) ratio, but analysts believe that this year’s income will increase by more than 50% and increase 34% in the long run.
Big picture
There is no such thing as a risk stock. The risk of NVIDIA is that a small number of companies that invest all these money in AI are starting to shop or close their wallets. Perhaps that’s why NVIDIA’s assessment is cheaper than the expected increase.
Although you can respect the risk (therefore diversifying the portfolio), there is evidence that NVIDIA can thrive beyond the temporary AI data center investment cycle.
Opportunities for generating AIs go beyond models such as CHATGPT to other applications, including agent AI, which replaces human beings in autonomous vehicles, humanoid robotics and call centers. It also surpasses the level of enterprise. As technology development and cost decrease, AI development will move downstream to small companies and even individuals. NVIDIA recently released a BLACKWELL drive supercomputer for the desktop.
Access to AI innovation can be expanded beyond today’s AI HyperScalers. NVIDIA has an internal track that allows the company to generate profits to build a dominant ecosystem in accelerator chips.
There is a game plan here
NVIDIA continues to provide great business results. Perhaps it is difficult to doubt the company’s position in the most important technology of this generation until the change. Although NVIDIA has increased 19%annually, which is half the estimates of analysts, the current P/E ratio of stocks is equal to the price/import growth (PEG) ratio of about 2 price/imports. In other words, NVIDIA offers safe margins if the situation is not expected in the next few years.
At the same time, stock prices can change to market volatility and economy and designated scientific changes. I have shown this in the last few weeks. NVIDIA has decreased almost 25%, which can continue if a wider market turbulence continues.
NVIDIA has a strong claim as the best stock to buy, but investors should always move slowly. If the price is much lower, consider the average of the early dollar that you buy slightly at once to capture additional value. If you don’t spend time completely time, the price will fall.
Considering the next 10 years, it is difficult to not like the combination of the future rise and the current value of NVIDIA.
Suzanne Frey, an executive of Alphabet, is a member of the board of directors of Motley Fool. Pope Justin has no position in any of the shares mentioned. MOTLEY FOOL is recommended and recommended in Alphabet, Microsoft and NVIDIA. MOTLEY FOOL recommends the following options: January 2026 Long $ 395 Microsoft and Tel for the short -term $ 405 Microsoft in January 2026. The MOTLEY FOOL has a public policy.
