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New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves
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.
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.
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.
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $621,976!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,085!*
Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of September 29, 2025
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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