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NVDA

4 Reasons Why Nvidia Is the Best AI Stock to Buy in 2026

April 09, 2026 — 04:40 pm EDT

Written by

Keithen Drury for

The Motley Fool->

Key Points

- AI demand is projected to rise through at least 2030.

- Nvidia has several catalysts to increase its revenue.

- The stock is an incredible value right now.

- 10 stocks we like better than Nvidia ›

There are thousands of stocks listed on the U.S. exchanges, ranging from some of the best investments in the world to companies that could go belly up any day now. However, I think some of the best investments investors can make right now are in the artificial intelligence (AI) realm. The market isn't all that bullish on stocks in this sector at the moment, yet there's likely to be a ton of growth in it over the next few years.

While there are several great AI stocks, I think most people would have a hard time arguing against Nvidia (NASDAQ: NVDA) as the best one to invest in. It is the clear market leader in designing AI computing chips, and it's well positioned to capitalize on all of the innovations in the space.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Here are the four chief reasons why I think it's one of the best buys in the entire stock market, not just the AI space.

Image source: Nvidia.

1. AI demand is on the rise

There is incredible demand for AI computing power. Nearly every company involved in the AI buildout is scrambling to increase its data center capacity. Right now, less than 20% of businesses are using AI, according to the U.S. Census Bureau. A large chunk of the economy hasn't even begun to use AI. As more of those organizations adopt it, demand for computing power outside of tech-focused industries will increase.

While the big four AI hyperscalers plan to spend $650 billion this year in capital expenditures, largely for their data center buildouts, that's nothing compared to where Nvidia thinks it's going. According to Nvidia execs, by 2030, global data center capital expenditures will rise to between $3 trillion and $4 trillion. That would be a fairly sizable increase from today's levels, but investors shouldn't be too quick to dismiss this forecast. This year, we're already a fifth of the way toward the low end of the projection. There's still five years' worth of expansion to come between now and then, and the $650 billion figure doesn't include other AI hyperscalers or companies in other countries.

2. Chinese revenue could return sometime this year

China and the U.S. are the two primary countries spending big on AI. However, last year at this time, President Donald Trump banned sales of Nvidia's chips to China. Moreover, the chips he blocked had been developed specifically to be acceptable under previous export regulations that limited the company from selling its most powerful wares to China, so there was a lot of money wrapped up in the design and the market-specific hardware.

However, Nvidia has received approval to restart shipments, and the company is restarting manufacturing of those processors. If Nvidia can successfully regain its market share in China, this could help it kick-start another phase of growth.

3. Nvidia's revenue growth is reaccelerating

During 2025, Nvidia's growth rates started to taper off. But now, that trend is reversing.

NVDA Revenue (Quarterly YoY Growth) data by YCharts.

The average Wall Street analyst covering the company expects 79% growth next quarter, and 85% the quarter after that. That expected reacceleration would be even more incredible considering Nvidia's size.

4. Nvidia's stock is dirt cheap for its growth

All of the factors discussed above might do little for Nvidia's stock if it were expensively and speculatively valued. But that's not the case.

NVDA PE Ratio (Forward) data by YCharts.

Nvidia trades for 36.2 times trailing earnings, not a bad price tag considering its track record of rapid growth. However, once forward earnings (which utilize projected 2026 earnings) are used, the picture becomes clearer. The market is essentially pricing in a strong 2026, but no growth after that. But investors know that Nvidia is on track to put up several years of strong growth thanks to massive AI demand.

With all that in mind, I expect that patient long-term investors could still make a ton of money by investing in Nvidia now.

Should you buy stock in Nvidia right now?

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