Think It's Too Late to Buy Nvidia Stock? Here's the Biggest Reason Why There's Still Time.

Nvidia's (NASDAQ: NVDA) stock price growth has slowed in 2025 (it's up only 8% so far), but it continues to beat the market, which is up only 2.1%. Earlier in the year, investors following Nvidia expressed concerns about multiple issues, including a new Chinese artificial intelligence (AI) model that worked using less-expensive (and fewer) chips to process its calculations, as well as changing regulatory policies that could curtail Nvidia's exports to China.

Nvidia remains one of the hottest stocks on the market, and even though it's up roughly 1,470% over the past five years, it's not too late to buy. Here's why.

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Image source: Getty Images.

The opportunity is exploding

Nvidia stock was a winner even before generative AI took off when ChatGPT launched at the end of 2022. It was already successful due to its high-powered graphics processing units (GPUs) that were needed for gaming as well as cryptocurrency mining, but it wasn't so well-known outside of those industries. It's now skyrocketing because generative AI needs powerful GPUs, too, and Nvidia is the leader. With nearly every large tech company in the race to release competitive AI platforms, Nvidia's business has been on fire.

This growing demand is expected to continue, largely because Nvidia's products are capable and versatile. New opportunities continue to pop up in AI, including with data centers. These AI companies need tons of power for AI's computational needs, and they need data centers to manage that workload. Nvidia's revenue increased 69% year over year in the fiscal 2026 first quarter (ended April 27), and data center segment revenue outpaced it, increasing 73%.

The data center opportunity will keep growing along with AI. According to Fortune Business Insights, the data center market was $243 billion in 2024, and it's expected to increase at a compound annual growth rate (CAGR) of 11.7% through 2032, reaching $585 billion.

This is just the beginning for AI, and Nvidia is well-positioned to tap into that high growth.

Should you invest $1,000 in Nvidia right now?

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.