From Nasdaq:

Many investors are attracted to the “Magnificent Seven” stocks for their strong brands and profitability. The Roundhill Magnificent Seven ETF has outperformed major indexes with a 51% return in the past year. Nvidia is the most expensive of the seven with a trailing P/E of 77 but has a significant growth runway in AI.

As data centers shift to GPUs for AI workloads, Nvidia’s revenue soared 265% YoY to $22 billion. The company estimates a potential $1-2 trillion market for data center infrastructure. AI’s expanding use is creating a demand surge for Nvidia’s products, making it a valuable long-term investment with growth potential.

Nvidia’s H100 GPU demand is on the rise, with Meta Platforms aiming for 350,000 H100 units by year-end. The upcoming H200 GPU is already facing supply constraints. Nvidia forecasts a 234% YoY revenue increase in the next quarter, with analysts predicting 35% annual earnings growth, setting it apart from the other Magnificent Seven stocks.

Despite a forward P/E of 37, analysts believe Nvidia offers significant long-term upside potential due to its dominance in the GPU market and robust free cash flow growth. While Nvidia may not be in the Motley Fool’s top 10 stocks, its current position in the market and future prospects make it a compelling investment option for those seeking growth and innovation.



Read more at Nasdaq: Here’s My Top “Magnificent Seven” Stock to Buy and Hold for the Next 10 Years