Nvidia: The Potential Stock of the Decade for Investors

Nvidia's Dominance in AI and Future Growth Opportunities / Artur Widak/Anadolu via Getty Images

Nvidia Corporation (NVDA) has emerged as a leading candidate for the title of "stock of the decade," primarily due to its pivotal role in the artificial intelligence (AI) industry. The company’s graphics processing units (GPUs) are crucial for AI applications, and Nvidia commands an impressive 95% share of the AI processing market. This commanding presence positions the company to capitalize on the anticipated $2 trillion in data center investments, solidifying its status as a key player in the tech landscape.

From a financial perspective, Nvidia has showcased extraordinary growth. In 2023, the company surpassed a market capitalization of $1 trillion, marking it as the seventh U.S. public company to reach this significant milestone. By June 2024, Nvidia’s valuation surged beyond $3.3 trillion, briefly elevating it to the status of the world’s most valuable publicly traded entity.

Despite its impressive achievements, Nvidia is not without its challenges. In early 2025, the stock experienced a notable decline, shedding $595 billion in market value following the introduction of a competitive AI model by Chinese startup DeepSeek, which requires less computing power. Nonetheless, many analysts maintain a positive outlook on Nvidia, perceiving these downturns as potential buying opportunities given the ongoing demand for AI GPUs.

As of February 24, 2025, Nvidia's stock is priced at $134.43 USD, reflecting a drop of $5.71 (approximately 4.08%) from the previous closing price. This highlights the importance of remaining cautious amidst the market fluctuations and emerging competition within the AI sector.

According to Louis Navellier, founder and chairman of Navellier & Associates, “No one can compete with Nvidia.” He emphasized that Nvidia possesses a monopoly on generative AI chips, which further cements its market dominance. His firm manages around $1 billion in assets and has held onto Nvidia stock since May 2019, driven by confidence in the company’s superior chip technology and the exceptional leadership of founder Jensen Huang. Navellier believes that investors should retain Nvidia shares through the decade, reflecting a strong conviction in its long-term prospects.

Wall Street remains optimistic about Nvidia as it prepares for its significant earnings report scheduled for the close of trading on February 26. Even though the emergence of DeepSeek has created ripples in the super-bullish AI narrative, analysts continue to foresee Nvidia reaping benefits from the global expansion of AI infrastructure. The aggressive capital expenditure plans outlined by major players like Amazon (AMZN) and Meta (META) during this earnings season further underscore this optimistic outlook.

However, caution signs are apparent as Nvidia approaches its earnings report. Recent data from Yahoo Finance indicates that the earnings per share (EPS) projections for Nvidia's first quarter have gradually declined over the past month, and Wall Street has not adjusted its 2025 EPS estimates for more than 60 days. Additionally, Nvidia is currently considered one of the more attractively valued AI stocks, trading at a forward price-to-earnings (P/E) ratio of 29. In contrast, competitors like Broadcom (AVGO) and Marvell Technology (MRVL) have higher valuations at 35 and 41 times their forward earnings, respectively, while Arm Holdings (ARM) sits at 72 times.

Despite these warning signs, Nvidia's staunch supporters remain undeterred, affirming their belief in the company’s resilience and future growth potential in the thriving AI market.