Everyone has a story about the one that got away. Among investors, most could likely name a time when they should've bought or sold a stock, but didn't. Take Nvidia (NVDA 1.25%): In hindsight, it would have been a no-brainer buy at most points in its history. The stock is up by nearly 27,000% over just the past decade. While that's a huge gain, the implications of that rise are even more stark.
A $10,000 investment in Nvidia made a decade ago would now be worth $2.7 million -- a life-changing amount of money for most retail investors. While some may be kicking themselves for missing that chance, I don't think that's necessary. Though Nvidia isn't going to rise by another 27,000%, it can still produce market-beating returns, and I think right now would be a compelling time to scoop up shares.
Image source: Getty Images.
Nvidia's growth is far from over
Nvidia's rapid rise in recent years is tied to the tech sector's AI infrastructure spending spree. Hyperscalers are spending every dollar they can get access to to purchase AI computing equipment, and Nvidia's graphics processing units (GPUs) are the most popular processors in that niche. This has led to unprecedented growth for a megacap company, and it isn't slowing down.
For its fiscal 2026, which ended in January, Wall Street analysts expect it to report 57% revenue growth. For fiscal 2027, the consensus is that it will accelerate to 65%.
NASDAQ: NVDA
Key Data Points
Those views are supported by the capital expenditure plans of its biggest customers. The four major hyperscalers alone say they plan to spend $650 billion on capex this year. Nvidia is also expected to resume selling chips into the Chinese market soon. All of this adds up to a booming environment for Nvidia, and demand for its wares is not expected to slow down anytime soon.
Nvidia projects that global data center capital expenditures will rise to $3 trillion to $4 trillion annually by 2030, and other companies in this sector have released similar projections. If they prove accurate, then the party is just getting started for Nvidia stock.
Despite that bullish outlook, it's trading at an attractive valuation.
NVDA PE Ratio (Forward) data by YCharts.
At under 24 times expected forward earnings, Nvidia looks like a great buy right now, and investors should use the opportunity to scoop up shares. However, interested investors may want to act fast, as the company reports earnings on Feb. 25, and that could be a huge day for the stock.
