Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
The company will be a natural beneficiary of new AI ambitions.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Alert: Top Cash Back Card Now Offers 0% Intro APR Until Nearly 2027
Enjoy 0% intro APR on purchases and balance transfers for 15 months—plus up to 5% cash back in popular categories.
Motley Fool Returns
Market-beating stocks from our flagship service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 2025-08-29 02:45:52.840929.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
As investors pour into artificial intelligence (AI) stocks, valuations have surged and plenty of money has been made along the way. One of the biggest winners of the recent AI boom has been Nvidia (NVDA 0.01%). In the past three years, the stock is up over 940%, meaning a $1,000 investment three years ago would be worth over $10,400 as of market close on Aug. 22.
With Nvidia's recent stock success, some investors may be concerned that they have missed the train. However, that's far from the case, and there's one reason why: Data center spending is still ramping up.
Image source: Getty Images.
Nvidia's recent success has come from its role in producing data center hardware, especially its graphics processing units (GPUs). In its latest fiscal quarter, data center revenue increased by 73% year over year and accounted for nearly 89% of its total revenue. This high growth could continue as four of the biggest global companies plan to up their capital expenditures (capex), with much of it aimed at data center infrastructure.
Of course, not all of this spending will be going into Nvidia's pockets, but it shows the huge scale of investments into AI data centers -- which Nvidia will benefit from.