Listening to industry leaders about the future of artificial intelligence (AI) is key to success as an investor. One of the AI leaders is Nvidia’s (NVDA -3.00%) CEO and Founder Jensen Huang. Because Nvidia manufactures the hardware that powers these AI models, Huang is keenly aware of industry trends and identified a major trend: agent AI.
This is the next step in integrating AI and using it for practical purposes. But what are AI agents? How can investors benefit from them? Investing in Nvidia is a great place to start.
AI agents will become mainstream in 2025
Huang spoke about AI agents at the recent CES trade show in Las Vegas. “I think it’s going to get back on track this year,” he said during a question-and-answer session.
AI agents can be deployed to perform routine tasks that humans often perform. Examples include data entry, customer interaction, and inventory count management. Fundamentally, AI goes beyond simple chat interactions. AI agents will be able to perform multi-step tasks that require reasoning as well as rigorous knowledge.
Nvidia provides a tool for building AI agents called Blueprints. Once a client builds these agents on Nvidia’s platform, they are essentially locking in as a long-term Nvidia customer, which is key to continued sales promotion. Nvidia’s platform has long been the standard in the AI world, and the launch of the Agent AI platform only solidifies that status.
Given the dominance of NVIDIA stock over the past few years, investors would be forgiven for thinking that NVIDIA stock’s upside potential is limited. However, NVIDIA still has significant growth ahead of it, and investors can still earn solid returns by investing in the stock.
With strong growth, stock prices still have room to rise
Wall Street analysts expect Nvidia’s revenue to increase 52% year-over-year for fiscal year 2026, which ends in January 2026 and includes most of 2025. This is incredible considering Nvidia’s revenue is expected to grow from $129 billion to nearly $200 billion. With this level of huge growth in mind, Nvidia remains one of the leading ways to invest in AI because it doesn’t have to pick winners. Many AI software companies will end up building models on Nvidia’s hardware infrastructure.
Many companies will build AI agents on Nvidia’s platform. Some people create them for internal use, while others create them to sell to clients. This neutrality makes Nvidia a promising investment, even though it has had an impressive performance over the past few years.
From a valuation perspective, Nvidia isn’t as expensive as it once was. Nvidia’s business growth is catching up with its stock valuation.
NVDA PE Ratio Data by YCharts
At a price-to-earnings ratio of 55 times, Nvidia’s stock price is not that expensive compared to the expected growth rate in the coming months. NVIDIA’s stock price doesn’t seem to be the whole story, given that tech giants Amazon’s price-to-earnings ratio (P/E) has remained low at 48 times, Apple’s 40 times, and Microsoft’s 35 times. It’s expensive.
Nvidia will continue to see strong growth in 2025, thanks in part to its AI agents. This will become a big trend. Nvidia is one of the best ways to invest in it. Investors need to keep an eye on Nvidia’s future, as fixating on past price points won’t help. Nvidia remains a strong stock pick, and its AI-based growth story is far from over. Investors can still make huge profits from it.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Keithen Drury has held positions at Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
