When most investors think about artificial intelligence (AI), I'd be surprised if Nvidia (NVDA 0.29%) isn't the business that comes first to mind. This company is the leader at the infrastructure layer of this revolutionary technology, providing critical hardware and software that its customers need. This dominant position has helped drive monster gains for investors.
If you'd bought this top AI stock five years ago, here's how much you'd have today.
Image source: Nvidia.
Nvidia's monster gains are hard to fathom
Nvidia shares have produced a total return of 1,360% in the past five years (as of Jan. 16). This impressive gain would've turned a $1,000 starting capital outlay into $14,590 today.
The company has registered unbelievable growth as its customers rush to expand their AI capabilities, resulting in these hyperscalers spending massive sums on Nvidia's graphics processing units. Revenue is projected to total $213.3 billion in fiscal 2026 (which ends in late January), according to consensus analyst views. This would be 63% higher than the figure reported the year before.
NASDAQ: NVDA
Key Data Points
Is this AI stock a buy in 2026?
It would be a flawed assumption to think that Nvidia shares were overvalued after such a superb performance. The stock trades at a forward price-to-earnings ratio of 24. That's a nice entry point to add the business to your portfolio. Just don't expect these incredible past gains to repeat over the next five years.
