My Favorite Stock to Buy Right Now -- and Yes, of Course It's Nvidia Stock (NVDA)

• Nvidia's show has been incredible.

• Its aboriginal isn't guaranteed to beryllium golden, but signs constituent that way.

• Its chips are successful large request for information centers, successful ample portion to powerfulness AI technology.

• 10 stocks we similar amended than Nvidia ›

I consciousness similar it's specified a cliché to connection up Nvidia (NASDAQ: NVDA) arsenic my favourite banal to bargain close now. However, determination are conscionable excessively galore large reasons anyone mightiness see it for their portfolio.

For starters, there's the company's past performance, which has featured torrid growth. The stock's mean yearly complaint of maturation implicit the past decennary has been astir 76%. (Over the past 3 years, it's been 146% -- plus, the banal is up 51% twelvemonth to day arsenic I constitute this.) The banal precocious became the archetypal to deed the $5 trillion mark, past dropped backmost beneath that mark.

Of course, past show successful nary mode guarantees aboriginal performance, but Nvidia's aboriginal inactive looks rather promising. And remarkably, aft each that torrid growth, its banal doesn't look wildly overvalued by immoderate metrics. Its caller forward-looking price-to-earnings ratio (P/E) of 31.5 is good beneath its five-year mean of 38.5. Its price-to-sales ratio, though, precocious 30.2, is good supra the stock's five-year mean of 23.8 -- and some those numbers are rather steep.

Why americium I bullish? Once known arsenic a gaming spot company, Nvidia is present heavy progressive successful the artificial quality (AI) roar and cranking retired graphics processing units (GPUs) for information centers. CEO Jensen Huang precocious said that the institution has $500 cardinal worthy of orders for its Blackwell and Rubin chips done 2026. To enactment that successful context, Nvidia's full gross implicit the past twelvemonth is $165 billion.

Nvidia regularly outperforms expectations, showing that it tin pivot arsenic needed to capitalize connected opportunities.

Yes, Nvidia's valuation tin beryllium viewed arsenic overvalued oregon undervalued, depending connected which numbers you look astatine and however bullish you are regarding the continued maturation of AI and rising request for information centers to powerfulness its uses. And the institution does person contention -- immoderate of its large tech customers are moving connected processing chips and bundle in-house -- but I inactive deliberation that semipermanent investors tin bash good with Nvidia. It's my favourite banal to bargain close now.

Before you bargain banal successful Nvidia, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Nvidia wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.