Project Stargate may be just the beginning.
The past few years have definitely been profitable for nvidia (NVDA 0.10%)) Investor. The stock price has surged more than seven times over the past two years, and today it tops the charts as the world’s most valuable company in terms of market capitalization. Stocks rose as much as 4.7% Wednesday morning. At 12:32 p.m. ET, the stock was still up 4.1%.
The advent of artificial intelligence (AI) is fueling Nvidia’s relentless rise, and new U.S. government initiatives show it still has a long runway for future growth.
Image source: Getty Images.
new AI initiatives
One of the many announcements by the Trump administration yesterday was the launch of Stargate, a project designed to increase U.S. President Donald Trump’s AI infrastructure. 1 billion in the next four years. This project will focus on increasing the number of data centers in America.
The group named several “key early technology partners” and beneficiaries of the initiative including Nvidia, Microsoft and Arm Holdings.
Nvidia pioneered the graphics processing unit (GPU) that underpins most AI systems. Additionally, these advanced chips are a staple of data centers that house these AI models. Nvidia completely dominates the data center GPU space, with 98% market share in both 2022 and 2023. Although 2024 numbers have not yet been released, Nvidia is expected to remain the undisputed leader.
Some investors may believe that the time to buy Nvidia has already passed since it has become the most valuable company in the world, but these developments indicate otherwise. . Additionally, the stock is currently on sale with next year’s expected sales of just 32 times. This is a very attractive price for a company with so many opportunities.
That’s why Nvidia stock is still a buy.
Danny Bena has held positions at Microsoft and Nvidia. Motley’s Fools has posted and recommended positions at Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: January 2026 long-term $395 phone at Microsoft and January 2026 short-term $405 phone at Microsoft. Motley’s Fools has a disclosure policy.
