If you're looking for a stock to add to your portfolio in March, I can think of few better picks than Nvidia (NVDA 1.48%). It is putting up incredible numbers right now, yet the stock market is not giving it enough credit for its success. I think March could be the month when investors finally realize what a steal the stock is, causing its price to rally.
There has rarely been a better buying opportunity for Nvidia's stock since the artificial intelligence (AI) infrastructure buildout began in 2023, making now an excellent time to add more to your existing Nvidia position or start a new one if you've missed out on its run so far.
Image source: Getty Images.
Nvidia's growth is accelerating
Nvidia has been a huge beneficiary of all of the AI spending that's going on, as it receives a large chunk of the capital expenditures that hyperscalers are making. While they set records with their data center spending in 2025, in 2026, they plan to spend even more. The big four hyperscalers have announced plans for about $650 billion in capital expenditures this year. There are several other big spenders in the sector beyond them, so the total figure will be far higher. However, that's nothing compared to where Nvidia believes spending will be in a couple of years. By 2030, it projects global data center capital expenditures will rise to between $3 trillion and $4 trillion annually.
NASDAQ: NVDA
Key Data Points
The chipmaker isn't the only one making this projection, either. McKinsey & Company estimated that by 2030, cumulative data center spend will need to be nearly $7 trillion to fulfill the expected demand for AI computing power. Those are monster figures that all project the same thing: 2026 isn't the end, it's just the beginning.
As a result, investors don't need to worry much that Nvidia's earnings or revenue growth will fall off a cliff when this year is over. There are still several more years of strong growth ahead. Furthermore, as the technology advances, it could be that we will require even more AI processing power than forecasters currently expect, resulting in real spending well outpacing even those massive predicted outlays. Regardless, Nvidia is well positioned to take in a major chunk of this spending, and thrive as a result.
It's already delivering monster success on the business side of things. In the fourth quarter of its fiscal 2026, which ended Jan. 25, Nvidia's revenue rose 73% year over year. That was an acceleration from its growth rates in previous quarters.
NVDA Revenue (Quarterly YoY Growth) data by YCharts.
For fiscal 2027 Q1, management expects its growth to accelerate to 77%. Nvidia is clearly growing rapidly and delivering excellent results. However, the stock isn't responding as one might expect it to.
Nvidia's stock appears cheap
I think the best way to value Nvidia's stock is by using the forward price-to-earnings ratio, as that metric factors in future growth that investors have fairly high visibility to. That could be problematic if the company's growth falls off a cliff next year, but with massive AI spending expected to continue for multiple years, I don't think that's something investors need to worry about.
Nvidia's stock trades at a relatively cheap 22.1 times forward earnings.
NVDA PE Ratio (Forward) data by YCharts.
For reference, the S&P 500 trades at 21.9 times forward earnings, so the market is valuing Nvidia as if it were an average participant. That's far from the case, which is why I think right now is an excellent time to scoop up shares.
Over its run, Nvidia has on multiple occasions traded at valuations of 40 times forward earnings or more. For it to hit that level again this year, the stock would have to double. While that would be a monster return in the short term, I think Nvidia is still set up to crush the market over the long term, too, making it an excellent stock to buy in March.
