Nvidia stands as the linchpin of the AI revolution, dominating as the largest GPU supplier to the AI industry and powering countless applications through CUDA and its software ecosystem.

Given its market position and comprehensive product lineup, Nvidia should be considered a core holding for AI-focused investors.

As a leading AI stock and central GPU provider for data centers and developers, Nvidia carried a market cap around $4.5 trillion at the time.

Valuation signals are mixed: the forward P/E sits around 31.5 (below the five-year average of 38.5), while the price-to-sales ratio at about 30.2 is above the five-year average of 23.8.

The piece relies on Motley Fool data and disclosures, noting historically strong Stock Advisor returns and reaffirming the author’s stance while clarifying current recommendations.

CEO Jensen Huang highlighted roughly $500 billion in customer orders for Blackwell and Rubin GPUs through 2026, underscoring robust near-term demand and revenue potential.

Nvidia has delivered torrid growth, with about 76% annual growth over the last decade and roughly 146% over the past three years, contributing to a 51% rise year to date.

Nvidia became the first company to reach a $5 trillion market cap, a milestone that has since fluctuated but underscored the stock’s extraordinary positioning.

Caution is raised that Nvidia may not appear in Motley Fool Stock Advisor’s current top 10 picks, but historical examples (such as Netflix in 2004 and Nvidia in 2005) illustrate the potential upside of following expert recommendations.

Competition exists as some large tech customers build in-house chips and software, yet the author remains bullish on Nvidia’s long-term prospects.

Disclosures indicate The Motley Fool holds Nvidia stock and recommends it, while the author has no positions in other mentioned stocks.

Nvidia is shifting focus from gaming chips to AI and data-center GPUs, repeatedly surpassing expectations and adapting to seize AI-driven opportunities.