Nvidia's AI Dominance Makes Stock a Buy Now

Nvidia's stock currently presents a compelling investment case, trading at valuation multiples near multiyear lows. This occurs even as the company experiences robust earnings growth and provides an optimistic future outlook. The stock's price-to-earnings ratios are currently below its 10-year average and significantly lower than peaks during earlier AI boom phases.

The company's financial performance is substantial, having generated over $250 billion in total revenue in its most recent fiscal year. This represents approximately a 65% year-over-year increase. The data center segment, particularly GPUs for AI acceleration, is now the primary revenue driver.

This segment is estimated to contribute over $190 billion in revenue, accounting for about 90% of total sales. Nvidia continues to hold a commanding market share, estimated at three-quarters of global AI accelerator revenue, despite recent slight declines.

Looking ahead, Nvidia's valuation is expected to be closely tied to its ability to sustain expected growth through 2028. Analysts project revenue to reach around $390 billion in 2027 and exceed $550 billion in 2028, indicating consistent annual growth of 24-25%.

Management's own forecast is even more optimistic, anticipating about 70% growth in fiscal 2028. This could propel revenue towards an impressive $670 billion, further solidifying its position in the AI market.