Artificial intelligence has become a major technology platform, with chatbots like ChatGPT gaining rapid adoption and driving investment into data centers. Nvidia, the biggest beneficiary, dominates market share in data center GPUs. The company’s stock has delivered significant returns for early investors but raises questions about its current valuation.
A similar scenario unfolded in 2012 when Apple was trading at a low P/E ratio due to underestimated growth prospects. Today, Nvidia might be facing a similar situation, with many investors underestimating the potential of AI. Despite skepticism over future growth, Nvidia’s stock appears cheap compared to slow-growth stocks like Walmart and Costco.
Key data points suggest that analysts expect Nvidia’s revenue to increase 53% this year and 24% next year. The company is also growing much faster than the S&P 500. While it may not become a ten-bagger like Apple, there’s a strong argument that investors are underestimating AI growth today. If true, Nvidia could be a significant winner over the next five to 10 years.
Source: https://www.fool.com/investing/2025/05/19/missed-out-on-apple-in-2012-buying-nvidia-stock-to