Nvidia Is the Ultimate Growth Stock to Buy Now -- Here's Why

Key Points
Nvidia hasn't added any sales to Chinese companies back into its guidance.
Nvidia's new technology will unlock impressive capabilities.
The stock is nearly priced at the same level as the S&P 500.
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Nvidia (NASDAQ: NVDA) has been one of the best stocks to own over the past three years, but that status has faltered lately. Since August 2025, Nvidia's stock has been essentially flat. That's more than half a year of performance that Nvidia investors aren't accustomed to, but I think right now could be a fantastic time to load up on shares.
While the stock hasn't moved in that timeframe, the business is still growing rapidly and showing signs of becoming even more dominant. This is a clear signal to buy the stock, and I think investors should buy now before the stock takes off.
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Nvidia's growth is accelerating
Nvidia makes graphics processing units (GPUs) and other software and hardware that support them. Nvidia's ecosystem is regarded as the best available, by far, which is why companies are willing to pay a premium to use Nvidia's products versus cheaper alternatives.
Additionally, Nvidia continues to push the limits of what is possible. While Blackwell GPUs had become the standard, its new Rubin GPUs provide even more impressive results. Rubin architecture reduces inference token cost by 10 times.
On the training side of artificial intelligence (AI), four times fewer Rubin GPUs are required versus Blackwell GPUs. Does this mean that companies are just going to deploy fewer GPUs? No, they'll still spend big on this technology, and reap the benefits of having a more powerful system.
Rubin GPUs are just now entering production and will likely be available later this year. This new technology isn't going to be available for free, which should help Nvidia grow its revenue even more.
On top of new technology, AI hyperscalers continue to spend as much of their resources as possible on data centers. The big four AI hyperscalers are projected to spend around $650 billion on AI data centers -- a new record. But that's nothing compared to where Nvidia thinks it will head. It projects that by the end of 2030, global data center capital expenditures will reach $3 trillion to $4 trillion. We're a long way away from that, but if that projection really pans out, Nvidia's stock will soar.
Another, less-discussed catalyst is the potential return of sales to Chinese companies. Right now, the U.S. government has approved chip exports, but Nvidia didn't include any sales to China in its first-quarter guidance. Before exports were terminated, Nvidia expected about $8 billion in export sales. If that returns, Nvidia's growth rate could receive a nice double-digit bump.
But even without sales to China, Nvidia still grew its revenue 73% in the first quarter of fiscal year (FY) 2026 (ended Jan. 25). For Q1, it expects growth of 77%. Nvidia's growth is accelerating due to increased hyperscaler spending, and demand for its products is insatiable. There is also a clear, multi-year growth trend ahead, but that's not how the stock is trading.
Nvidia's stock appears dirt cheap
Despite all the positive catalysts I named above, Nvidia's stock trades for 21.8 times forward earnings. For reference, the S&P 500 (SNPINDEX: ^GSPC) trades for 21.2.
Because this is a forward-looking projection, the market is essentially telling investors that Nvidia expects one more year of rapid growth from investors, and then it will become a market-matching stock. However, that doesn't line up with any projections from Nvidia, its peers, or third-party estimates.
The reality is that the AI buildout should last for several more years, and Nvidia will be one of the primary beneficiaries of all this spending. The market may be pessimistic on Nvidia's stock outlook right now, but I expect that to flip as 2026 progresses. That makes Nvidia a top stock to buy now, and I think investors have no time to lose, as the stock could turn around any day now.
Should you buy stock in Nvidia right now?
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Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.