Nvidia is the most valuable company in the world, and it's still growing like a start-up.
It is gushing profits from selling its powerful AI chips to data centers.
The company just unveiled its new Jetson Thor computer aimed at the burgeoning market for robotics.
Patiently holding quality growth stocks over many years can make a huge difference in your long-term returns. When considering where to start, there's one no-brainer choice, and it happens to be the most valuable company in the world.
Nvidia (NASDAQ: NVDA) is the leading supplier of advanced computing hardware that is powering the artificial intelligence (AI) revolution. The stock has skyrocketed over 1,300% over the past five years and currently has a market cap of $4.4 trillion. However, there are good reasons it could be worth even more in 10 years.
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The company was founded in 1993, but it's still growing rapidly. Its trailing-12-month revenue has surged 54% to $148 billion, driven by demand for its accelerated computing platform built for advanced AI workloads.
It's easy to be blown away by its incredible revenue growth while missing just how profitable this company is. When you control a high percentage of the AI chip market, you can price your products to earn high margins. Nvidia generated $77 billion in profit over the last four quarters, and analysts expect its earnings to grow at an annualized rate of 34% over the next several years.
The insatiable demand for more AI infrastructure should continue to drive tremendous growth for Nvidia. Businesses are pouring billions into data centers and AI training because this technology can save them millions, if not billions, in costs over the long term. AI is the engine for faster research, product prototyping, and superintelligent personalized assistants. Nvidia is the company powering it all.
Just as the internet led to new markets like digital advertising, e-commerce, smartphones, and cloud computing, AI will lead to new industries that could be worth trillions. Nvidia is already positioning itself to benefit from the demand for autonomous products in the coming years. The company just revealed its new Jetson Thor computer that brings 7.5 times more compute for training humanoid robots.
Nvidia is truly building the future, and buying the stock could serve as the first step toward a happy retirement.
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John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.