Investment opportunities like these don’t come around very often. Artificial intelligence (AI) has the potential to make an impact that few technologies have. Massive gains from improved worker efficiency can boost profits like we’ve never seen before, and investing in this lucrative field is a genius idea for investors. However, there are several ways to invest in AI, which makes it somewhat confusing as to where investors should start.
For me, there is one clear choice, and it was the clear choice from 2023: Nvidia(NASDAQ: NVDA). Nvidia is leading the way with its advanced computing hardware being deployed to train and run AI models. Even though its stock has already risen a lot, I think there is a generational investment opportunity that investors cannot afford to miss.
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Most investors, especially new ones, will look at Nvidia’s stock chart and assume they’ve missed the boat. After all, it has increased almost 1,200% since 2023. That’s known as price anchoring, and it’s a common trait that all humans exhibit. However, it can be dangerous for investors.
Instead of looking at where you are can bought it years ago, investors need to change their mindset and look at where can go over the next few years. The market is a forward-looking machine, so investors should be too. Fortunately for prospective Nvidia investors, the artificial intelligence part has just begun.
Nvidia makes graphics processing units (GPUs), which have a unique ability to process multiple calculations in parallel. This makes them ideally suited for tasks that require extreme computing power, such as generative AI. However, GPUs have also been successfully deployed in other applications, such as engineering simulations, drug discovery, and cryptocurrency mining. Still, nothing beats the GPU demand we’re seeing from AI.
In 2025, Nvidia estimated that global data center capital expenditures totaled approximately $600 billion. However, that figure is expected to rise to $3 trillion to $4 trillion by 2030. While that projection can be easy for investors to wash and think that Nvidia is throwing more the AI market, I think that investors should be a bit more accepting.
Nvidia has more information about this market than almost anyone else. It also sold capacity for its cloud GPUs from Q3. As a result, AI hyperscalers are ordering GPUs years in advance to secure their hardware when it comes time to install it in a data center. This gives Nvidia a great looking glass into the future, and I’m inclined to believe Nvidia’s management. Even if the dollar figure falls short of the $3 trillion to $4 trillion range, I think the direction of increased AI spending is the correct one.
But what does this mean for Nvidia and its investors now?
Nvidia already has an impressive amount of the AI computing market. However, increased competition from AMD and Broadcom they can steal some of the growing market share. As a result, I’ll lower my growth expectations. For FY 2026 (which ends in January 2026), Wall Street estimates that Nvidia will generate about $213 billion. If the estimate of the capital expenditure of the global data center of $ 600 billion is to be believed, then it is clear that Nvidia gets more than a third of the total expenditures of the data center. That’s a huge market share, but if we reduce that share to 25%, it introduces a bit of conservatism into the estimate.
If the 2030 market reaches the $3 trillion level, Nvidia can be projected to produce $750 billion in revenue by 2030 if maintains a market share of 25%. That’s a bold projection, but with Nvidia’s history of producing flagship hardware, I don’t think it’s out of the question. $750 billion in revenue would more than triple what it is producing now, making the stock an excellent investment.
It’s rare to see a company triple its revenue in five years, let alone one as big as Nvidia. However, there is a huge amount of money being spent on AI infrastructure, and Nvidia is one of the best ways to benefit from these builds. AI is a generational investment opportunity, and Nvidia is my best way to capitalize on it in 2026.
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Keithen Drury holds positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
A Once-in-a-Generation Investment Opportunity: Here’s My Top AI Stock for 2026 was originally published by The Motley Fool
