Why Nvidia Remains Among the Best Stocks to Buy Right Now in the AI Revolution

When evaluating which stocks merit portfolio inclusion in today’s AI-driven economy, Nvidia consistently emerges as a compelling candidate. Trading at a forward price-to-earnings ratio near 24x based on 2026 analyst consensus, and a price-to-earnings-to-growth ratio of 0.65, the company demonstrates the rare combination of growth-oriented opportunity and reasonable valuation—characteristics that sophisticated investors seek when identifying best stocks to buy right now.

Compelling Valuation Meets Exceptional Growth

The numbers tell a remarkable story. Nvidia’s recent quarter showcased $57 billion in revenue, representing a 62% increase year-over-year. Even more striking is the trajectory when compared to historical performance: the company generated just $5.9 billion in quarterly revenue during Q3 of fiscal 2023. This isn’t merely strong growth—it represents the kind of trajectory that defines generational investment opportunities.

Yet what makes this particularly noteworthy is that management continues to signal this expansion is far from mature. With artificial intelligence infrastructure investment accelerating across enterprises and governments alike, the runway for continued expansion appears substantial.

Commanding Position in AI Infrastructure Expansion

Nvidia’s rise to prominence stems from becoming a primary beneficiary of the global AI buildout. Nearly every major technology company racing to develop advanced large language models depends on Nvidia’s graphics processing units to train their systems. Simultaneously, cloud infrastructure providers are channeling massive capital into AI data centers to meet surging demand for computing resources.

The competitive landscape extends beyond private enterprise. Governments worldwide are now placing significant bets on AI advancement, further amplifying demand for the foundational semiconductor technology that powers these systems.

Technology Moat Protects Long-Term Market Dominance

Competition is undeniably increasing, yet Nvidia maintains what analysts term a “commanding position.” The company’s competitive advantages rest on several technical foundations. Custom AI chips designed by competitors offer limited flexibility compared to Nvidia’s general-purpose graphics processors in a rapidly evolving technical environment. More substantially, the majority of foundational AI applications were developed using Nvidia’s CUDA software platform, which is specifically optimized for its hardware architecture.

Beyond CUDA, Nvidia’s proprietary NVLink interconnect technology creates additional leverage. This system enables rapid communication between chips, allowing multiple processors to function as an integrated computing unit—a capability competitors struggle to replicate effectively.

Networking Business Opens New Growth Frontiers

Nvidia’s strategic expansion extends beyond GPU manufacturing alone. The company now delivers integrated AI solutions encompassing not only processors but also supplementary chips and networking infrastructure. This diversification strategy is already bearing results: the networking segment has emerged as the fastest-growing division, with recent quarterly revenue reaching $8.2 billion—a 162% increase from the prior year.

This evolution positions Nvidia as something beyond a traditional semiconductor supplier. The company increasingly functions as a comprehensive infrastructure provider, capturing value across multiple layers of the AI stack.

Is Now the Time to Add Nvidia to Your Portfolio?

The investment thesis hinges on recognizing AI as an emerging secular trend rather than a cyclical phenomenon. The technology is still in early adoption phases, fundamentally reshaping how businesses operate and how economies function. Given Nvidia’s commanding position within this infrastructure buildout, the company appears positioned to be a significant beneficiary regardless of which specific AI applications ultimately dominate.

For investors seeking best stocks to buy right now that balance growth potential with reasonable valuations, Nvidia merits serious consideration. The company’s technical moats, market positioning, and revenue growth trajectory suggest this may represent an attractive entry point before competitive dynamics potentially intensify further.

Data as of January 25, 2026