Picking just one artificial intelligence (AI) stock to own can be a challenge. There are multiple ways to invest in this trend, many of which have their own benefits. Additionally, investing in only one AI stock may not be a good move either. If you put all your eggs in one basket, you’re likely to miss out on a trend as huge as AI if your choices go wrong. This one stock summary makes it my favorite AI stock. This is the first stock to add if the market suddenly goes down.
If I had to own only one, I’d probably choose Nvidia (NVDA 3.10%). There are a number of reasons why, but the main reason why AI is my top choice for AI is because it actually makes money from trends.
Nvidia’s growth is expected to continue until 2025
Many of the leading AI companies say it could be years before they see any real benefit from their generative AI models and platforms. Given how much money is being poured into this technology, that’s not what investors want to hear. But where exactly is that money they are investing going?
Nvidia.
Nvidia doesn’t receive 100% of these investment funds, but it does receive a significant portion. Nvidia’s GPUs (graphics processing units) are the tools AI companies need to create these top-of-the-line AI models. GPUs have the unique ability to process multiple calculations in parallel, allowing them to process information faster than standard CPUs. Additionally, these GPUs can be connected within a cluster to double the computing power.
Nvidia’s GPUs and software are the best in the industry, so it’s no wonder Nvidia has captured a huge share of the AI computing market. Take a look at how its revenue has soared over the past two years.
NVDA Revenue (TTM) Data by YCharts
With growth like this, investors could be forgiven for thinking Nvidia’s growth is over, but that’s not actually the case. The demand for AI computing is still unmet. AI hyperscalers like Meta Platforms have warned investors that spending on computing infrastructure will increase in 2025. Additionally, cloud computing providers say that as demand increases, so does the need to purchase additional computing power.
This means Nvidia’s revenue will continue to grow for years to come, which is great news for shareholders.
However, it is not without competition. Since these AI models require less development, companies may turn to purchasing CPUs for AI inference. AI inference is when an AI model is asked for an output, but has already been trained on a dataset. This is a much less intensive process and can run with less computational power than one of Nvidia’s GPUs would require.
Additionally, many cloud computing companies and AI hyperscalers have created their own versions of GPUs that don’t require paying Nvidia. While these AI accelerators have specific use cases, GPUs excel at a broader range of training tasks and are incredibly versatile.
All of this suggests that Nvidia’s growth is not over yet, but it may face further challenges in the future. Still, Wall Street analysts are predicting strong growth.
NVDA earnings forecast data for this year by YCharts
With revenue expected to grow 52% in fiscal 2026, Nvidia still has enough growth left to maintain its dominance in the AI stock market if bought at the right price.
Nvidia stock isn’t that expensive compared to many big tech stocks
Given Nvidia’s significant stock price rise, it’s no wonder the stock seems expensive. And you would be right. But considering the growth, it doesn’t seem that bad.
Nvidia trades at 52 times earnings, which isn’t bad for a stock that’s growing this fast. With Nvidia trading at less than 30 times fiscal 2026 earnings, the stock is starting to look cheap after the recent decline.
Nvidia has been one of the best AI stocks to own for the past two years, and we think it could continue to be that way in 2025. We’re still in the early stages of AI, which means we’ll need more Nvidia GPUs to continue training these models. As a result, Nvidia’s stock price could rise further, making it a great choice in the AI investment space.
Randi Zuckerberg is a former Facebook head of market development and spokesperson, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Keithen Drury holds a position at Nvidia. The Motley Fool has a position in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
