Nvidia (NVDA 1.56%) has been a leader in the artificial intelligence (AI) buildout since its start in 2023. There have also been other top performers, such as Palantir (PLTR 1.65%), which provides artificial intelligence-powered software.
Additionally, there are the AI hyperscalers that are powering much of the AI computing capacity built out. And even more in the weeds are utility companies delivering the energy needed to power AI, as well as the construction companies building the data centers.
The AI investment realm is incredibly wide, and several companies are benefiting from the massive spending spree by the AI hyperscalers. But of all these various companies involved in the AI race, which is the best one to buy now?
Sometimes, the answer is obvious and right in front of you. I think Nvidia is among the best AI stocks to buy right now.
Image source: Getty Images.
Nvidia is making money right now
If you break down each of the AI sectors mentioned above, there are three cohorts. First are the companies that are making money right now. These include the construction companies and computing power providers like Nvidia.
Second are the companies that are growing into the AI demand, which include companies like Palantir and energy companies. While both cohorts have experienced strong growth so far, there is still plenty more to come as AI adoption ramps up.
Last are companies that are set to benefit from AI in the future, which include the AI hyperscalers. These businesses are the big AI spenders, and their investments may or may not pay off in the long run.
As an investor, I'm focused on the companies that are making money right now. Nvidia is among the best in this category, which makes it an excellent AI stock to buy right now.
NASDAQ: NVDA
Key Data Points
Nvidia makes graphics processing units (GPUs), which have powered a large chunk of the AI workloads so far. GPUs can process multiple calculations in parallel, making them perfectly suited for tasks like AI that require extreme computing power.
Nvidia isn't the only GPU provider in the world; there are others with competing products. There are also GPU alternatives that can compete with GPUs in one area but fail as soon as the computing workload isn't optimized for the custom chip. This makes Nvidia's GPUs the most powerful and flexible computing units available, which is why they are the most popular.
They are so popular that Nvidia has actually sold out of cloud GPUs. Considering that Nvidia's sales were $57 billion in the third quarter of fiscal year 2026 (ended Oct. 26), that's an incredible statement to be sold out. Furthermore, revenue was up 62% year over year, so demand is still rising. Nvidia will continue to push its component providers as fast as possible to accelerate production, as the AI buildout will wait for no company.
The AI buildout is slated to ramp up in the next few years
Although a massive amount has already been spent on data centers, we're just beginning the ramp-up. In 2025, AI hyperscalers spent record amounts on capital expenditures, mostly going toward data center construction. However, these companies have all informed investors that 2026's expenses will be greater than 2025's by a significant margin.
And that's just one year in a long-term trend, as Nvidia believes that global data center capital expenditures will rise from $600 billion in 2025 to $3 trillion to $4 trillion by 2030. That's incredible growth and shows that the companies involved in the data center buildout realm are slated to experience monster growth over the next few years.
With Nvidia already being a successful investment in the past, I think it's primed to continue winning. The stock is also fairly cheap and trades for less than 24 times next year's earnings. That's far cheaper than many of its big tech peers, which should ease investors' concerns for overpaying for Nvidia's stock.
Nvidia's stock is currently down by around 15% from its all-time high, making now a great time to buy shares.
