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The leader in AI chips maintains a strong competitive position by providing the essential components to build next-generation data centers.
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Nvidia offers an attractive valuation relative to its growth prospects.
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10 stocks we like more than Nvidia ›
NVIDIA (NASDAQ: NVDA) has been one of the top-performing tech stocks in recent years. Shares have risen 22,000% in the last 10 years, 1,230% in the previous five years and 30% in the last 12 months, surpassing the Nasdaq CompositeProfitability of 20% in one year.
While there is increasing competition in the artificial intelligence (AI) chip market, Nvidia continues to demonstrate leadership in delivering market-beating returns for investors in this bull market.
There has been considerable media attention on advances in custom AI chips, such as Google’s Tensor Processing Units (TPUs), and how these could negatively impact Nvidia’s sales. However, one of the reasons Nvidia is likely to continue dominating the data center chip market is that it offers much more than just a chip.
Nvidia offers a complete technology stack of chips, software and networking components to build AI data centers. Nvidia’s GB300 Blackwell graphics processing units (GPUs) remain the most in-demand AI chip as we enter 2026. Management stated in its recent quarterly earnings call that computing capacity in cloud data centers using Nvidia chips is fully utilized, while demand for more chips remains above expectations.
With the stock continuing to trade at a reasonable forward (one-year) P/E ratio of 24, Nvidia remains one of the best growth stocks to buy right now. Analysts expect its earnings per share to compound at an annual rate of 37% over the next few years.
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