3 Compelling Reasons to Consider Nvidia Stock for Your Portfolio

Nvidia (NVDA) is a shining example of a tech stock that has soared to impressive heights, with gains upwards of 480% since the start of 2023. But the party isn't over. Here's why grabbing a piece of Nvidia could still be a savvy move for investors looking towards the future.

1. Unstoppable GPU Demand

The heart of Nvidia's business lies in its graphics processing units (GPUs). These powerhouses drive everything from video games to complex simulations and the burgeoning field of artificial intelligence (AI). With data centers mushrooming to support AI advancements, Nvidia's financials have rocketed, boasting a 265% increase in revenue to the tune of $22.1 billion for its latest quarter, culminating in annual revenue of $60.9 billion for 2024.

Future predictions suggest that the global GPU market could hit a staggering $773 billion by 2032. With Nvidia already a titan in this space, this growth trajectory could see them reaping major benefits.

2. AI's Potential is Just Unfolding

While AI may seem ubiquitous in the tech world, its real-world applications in everyday work are just scratching the surface. As digital assistants become commonplace and businesses begin harnessing the power of AI for productivity, the demand for GPUs like Nvidia's will climb. The release of Nvidia's H200 GPU — a successor to its flagship H100 model with double the computing firepower — positions Nvidia at the forefront of this technological revolution.

3. Reasonable Stock Valuation

Despite its rapid growth, Nvidia's stock may not be as exorbitantly priced as some fear. A forward-looking perspective would gauge Nvidia's price-to-earnings (P/E) ratio in the realms of reason, especially when juxtaposed against giants like Microsoft. Bolstered by Nvidia's prospects for steady growth, the stock appears to be an enticing buy for the long-term investor.

Nvidia, Investing, Stocks