This 1 chart shows why Nvidia is the best “Magnificent Seven” stock to hold forever.

nvidia (NVDA 0.35%) did it again For three consecutive quarters, the company exceeded management’s own revenue goals by more than $2 billion. The technology company is a clear leader in advancing various uses of artificial intelligence (AI).

Nvidia reported revenue of $22.1 billion in the fourth quarter of fiscal 2024, which ended Jan. 28. This represents a 265% increase compared to the same period last year and well exceeds the previous target of $20 billion.

NVIDIA and the AI ​​boom

This one chart pretty much tells the whole story.

Last year, sales in the data center segment, which includes advanced AI chips, exploded. Three of Nvidia’s four business units saw year-over-year revenue increases in the fourth quarter, with automotive being the only one that lagged behind. But now the data center segment is the focus. Data center revenue increased more than 400% year-over-year.

The company believes the escalation will continue, as management believes total sales will reach approximately $24 billion this quarter. This product is also a high margin product. For full fiscal 2024, gross profit margin expanded to nearly 73% compared to 57% in fiscal 2023. This is expected to continue to increase to over 76% in the first quarter of the current fiscal year 2025.

Of course, investors took notice of these eye-popping numbers, and Nvidia stock soared along with its sales and earnings.

The stock price is likely to fluctuate, but it still doesn’t look overly expensive. This is because growth is still accelerating. A future price-to-earnings (P/E) multiple of 32 is expensive by traditional standards, but that metric could decline quickly as earnings expand.

And the company still has potential for growth in other areas. The aforementioned automotive sector could grow quickly as autonomous vehicles become more mainstream. This is one more reason to ensure that Nvidia has a place in the growth stock portion of any portfolio.