Nvidia (NASDAQ:NVDA) It has been a top stock to own for the past few years, but its gains have slowed recently. Since August 1, 2025, it has gained just 5% compared to the S&P 500. (SNPINDEX: ^GSPC) Approximately 10% increase. Additionally, if you look at what’s happening in the field of artificial intelligence (AI), its poor performance can be a bit puzzling.
Nvidia has published strong results twice since then and made surprising predictions about the future of building AI. I think the market is getting a little tired of this GPU giant, even though all signs point to it continuing to be a good investment. Nvidia has given investors over 3 trillion good reasons to like this stock since August, and we’d recommend stocking up on this stock before the rest of the market regains optimism.
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Lately, much of the conversation in the AI world has focused on the capital spending guidance released this year by Amazon, Alphabet, and Meta Platforms. These three companies alone are expected to spend at least $500 billion in capital spending in 2026. This is a significant increase from 2025 levels, and NVIDIA will be one of the main beneficiaries of that spending. However, the stock price did not move.
Another bullish indicator for Nvidia is the expected increase in global data center capital spending. The company predicts that by 2030, global data center capital spending will reach $3 trillion to $4 trillion annually. This is significant growth, and if Nvidia can maintain its market share, it should see significant revenue growth over that period.
The company estimates this spending will be approximately $600 billion in 2025. Wall Street analysts expect to hear that Nvidia generated $213 billion in revenue during its 2026 fiscal year, which ended in January. This means that, based on its current share of the AI accelerator market, Nvidia received approximately one-third of all data center capital spending. If it can maintain this market share and the market grows as the company predicts, high-margin revenue could reach $1 trillion.
That alone is reason to invest, but Nvidia’s stock price has barely moved in the past six months.
Another opportunity for the future is the resumption of sales to China. Nvidia is once again able to export graphics processing units (GPUs) to China, regaining access to the world’s second-largest AI market.
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