Nvidia is leading the charge in artificial intelligence (AI) computing, with its semiconductor chipsets powering most AI infrastructure. The company has seen impressive growth over the past three years and is expected to continue posting market-beating returns. Despite rising competition from OpenAI’s multi-billion-dollar deals, Nvidia remains the industry leader.
Its fiscal 2026 second quarter revenue rose 56% year over year to $46.7 billion, with quarterly revenue expected to rise to $54 billion in fiscal Q3. This growth is projected to continue through 2030, with global data center capital expenditure reaching $3 trillion to $4 trillion. If this happens, it would translate into a market cap of $25 trillion by the end of 2030.
Nvidia’s growth potential is significant, with some analysts projecting a 42% compounded annual growth rate (CAGR) over the next five years. This would be explosive growth, especially considering its current valuation of $4.93 trillion. Despite its high valuation, Nvidia remains one of the best stocks to buy and hold now, as increased usage of generative AI will require further computing capacity.
Investors should keep an eye on Nvidia’s performance, as it continues to dominate the AI computing market. With its strong growth potential and leadership position, Nvidia is poised for explosive growth amid the AI computing trend.
Source: https://www.fool.com/investing/2025/11/02/ai-stock-poised-explosive-growth-nvda