Think It's Too Late to Buy Nvidia Stock? Here's Why the Best Could Be Yet to Come.
Key Points
Nvidia stock has been one of the best performers of the past decade.
But there is not enough data center capacity to meet growing demand for artificial intelligence.
Nvidia stock looks undervalued ahead of this opportunity.
- 10 stocks we like better than Nvidia ›
Nvidia's (NASDAQ: NVDA) powerful chips are used in almost every data center and cloud service provider for the most advanced artificial intelligence (AI) workloads. Its stock has rocketed over 30,000% over the last 10 years, making Nvidia the most valuable company in the world with a market cap over $4.6 trillion at the time of writing.
But Nvidia's management mentioned one number on the company's last earnings call that stunned analysts, and it's why the stock is still a no-brainer buy.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Nvidia.
A multitrillion-dollar opportunity
During Nvidia's fiscal second-quarter 2026 earnings call, CFO Colette Kress said, "We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade. The scale and scope of these build-outs present significant long-term growth opportunities for Nvidia."
This statement further builds the case that Wall Street is still underestimating the magnitude of the AI opportunity for Nvidia. AI model builders like OpenAI, which use Nvidia's chips, are seeing more demand than they have computing capacity. This is why there has been a rush to secure more data center capacity this year by tech companies.
Despite Nvidia's data center revenue growing 56% year over year last quarter, investors can still buy the stock at a very reasonable earnings multiple of 30 based on next year's earnings estimate.
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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.
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