Nvidia’s stock has pulled back from its all-time high, but its business remains strong, with long-term growth potential. The stock is still considered a bargain despite recent declines. On Oct. 29, 2025, Nvidia’s stock hit an all-time high of $207.03 per share, reaching a market cap of $5.03 trillion. Since then, it has dropped 11% to about $4.5 trillion.

The company’s growth over the past five years has been driven by the rapid expansion of the AI market. Nvidia’s GPUs are favored for AI applications due to their parallel processing capabilities. As a result, it controls over 90% of the discrete GPU market. Analysts expect its revenue and EPS to grow at CAGRs of 47% and 46%, respectively, from fiscal 2025 to fiscal 2028.

Despite concerns about competition and market saturation, Nvidia’s scale, reliability, and ecosystem should keep it at the top of the AI market. Analysts predict a nearly 20% increase in its stock price over the next 12 months, potentially pushing its market cap back above $5 trillion. The company is positioned to thrive in the expanding AI market in the years to come.

Investors considering buying Nvidia stock should note that the Motley Fool Stock Advisor team has identified 10 other stocks with significant growth potential. While Nvidia has been a strong performer, there may be even better opportunities for investors looking to maximize returns. Stock Advisor’s total average return is 885%, outperforming the S&P 500 by a wide margin.

Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Stock Will Be Worth $5 Trillion by End of 2026