Investors may be underestimating Nvidia's future potential in AI technology

From Nasdaq: 2025-05-19 04:12:00

Artificial intelligence (AI) is the next major technology platform, with chatbots like ChatGPT gaining rapid adoption. Big tech companies are investing billions in data centers for AI computing power. Nvidia is a major beneficiary, dominating the market with GPUs and potential for growth. Investors may be underestimating Nvidia’s future potential, similar to Apple in 2012.

In 2012, Apple’s market cap was $517 billion, now at $3 trillion. Investors underestimated its growth, leading to a P/E ratio of 13.5. Apple’s stock grew nearly 1,000%, driven by business growth and multiple expansion. Nvidia’s stock may be undervalued with a forward P/E of 31, showing potential for significant growth in the AI industry.

Investors can learn from Apple’s growth and undervaluation in 2012 when considering Nvidia’s potential. Nvidia’s stock may be cheaper than slow-growth stocks like Walmart, with analysts predicting revenue increases. Nvidia could be a big winner in the next five to 10 years with underestimated growth in AI technology and market dominance.

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Read more at Nasdaq: Missed Out on Apple in 2012? Buying Nvidia Stock Today Could Be Your Second Chance