nvidia (NVDA) 6.43%)) It does not develop large language models. No computer game franchises will be created. They do not manufacture humanoid robots or self-driving cars. What Nvidia does is create the computing hardware technology needed for all of these efforts.
Companies around the world dedicate their capital to these projects. Nvidia is and will continue to be a leading computing supplier for these technologies. With a product suite that offers hardware, software and other expertise, businesses need to stay on the forefront as they continue to advance and innovate.
But that’s not the real reason why Nvidia’s stock will skyrocket over the next five years.
When others are afraid, they become greedy
Stock market corrections could be a close friend of long-term investors. The NASDAQ Composite Index has entered the revised territory since its closure high of 20,174 on December 16th. One result of the market slump is a decline of more than 20% in NVIDIA shares this year.
Large companies are investing in hundreds of billions of dollars in artificial intelligence (AI) infrastructure. This is a major reason why Nvidia generated more than $130 billion in revenue last year.
Management expects Nvidia’s first quarter of 2026, which began in late January, to deliver 65% revenue growth compared to the previous year. That impressive increase is likely to slower as the year progresses, facing more severe comparisons. However, new catalysts could re-stimulate sales growth over the next few years.
These include business growth outside of Nvidia’s data centers. The company’s gaming segment increased revenue by 9% last year. Professional visualizations, including new personal AI supercomputers, have skyrocketed 55% in robotics and automotive revenues and increased sales by 21%.
Nvidia has a lot of iron in fire that can all contribute meaningfully over the next five years. Stocks are nearly 30% below their early January high, but now it’s a good time to follow Warren Buffett’s advice and buy this great stock, but others fear.
