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The Artificial Intelligence (AI) Stock That Smart Money Is Buying This March
Summary
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Nvidia (NASDAQ: NVDA), the world's largest producer of discrete GPUs, is the top artificial intelligence (AI) stock for many investors. Most of the world's top AI companies use its chips to train their AI algorithms, and it locks in those clients with its proprietary services.
Nvidia's stock has already soared nearly 22,000% over the past decade -- lifting its market cap to $4.3 trillion and making it the world's most valuable company. However, the smart money will likely keep flowing into Nvidia's stock in March as the AI market continues expanding.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Nvidia once generated most of its revenue from selling gaming GPUs for PCs, but the lion's share now comes from its data center GPUs. Unlike CPUs, which are optimized for sequential tasks, GPUs are designed to process parallel tasks. That makes them better-suited for processing complex machine learning and AI tasks than stand-alone CPUs.
Nvidia established a first-mover advantage in this market, and it maintained that lead with its Turing (2019), Ampere (2020), Hopper (2022), and Blackwell (2024) chip architectures. It plans to launch its next chip architecture, Rubin, in the second half of this year. It controls more than 90% of the discrete GPU market, while AMD (NASDAQ: AMD) holds a single-digit share.
Nvidia's proprietary programming platform, CUDA (Compute Unified Device Architecture), enables developers to easily create AI applications optimized for its chips. The stickiness of that ecosystem, which includes other prisoner-taking services, reinforces its market dominance.
Nvidia directly invests in some of the fastest-growing AI companies, including OpenAI, and has secured major partnerships with government and commercial customers. In other words, it will continue selling the best picks and shovels for the ongoing AI gold rush.
From fiscal 2026 (which ended in Jan. 2026) to fiscal 2029, analysts expect Nvidia's revenue and EPS to grow at CAGRs of 36% and 37%, respectively. Those are incredible growth rates for a stock that trades at 22 times forward earnings. It also repurchased a whopping $40.1 billion in shares in fiscal 2026, and it still has $58.5 billion left in its current buyback authorization.
Nvidia faces competition from AMD's cheaper data center GPUs and Broadcom's (NASDAQ: AVGO) custom AI accelerators, while export restrictions continue to throttle its chip sales to China. Yet it should easily overcome those challenges as it remains a linchpin of the AI market -- so it's still a great growth stock for long-term investors to accumulate.
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 8, 2026.
Leo Sun has no position in any of the stocks mentioned. 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.
The Artificial Intelligence (AI) Stock That Smart Money Is Buying This March was originally published by The Motley Fool
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Nvidia (NASDAQ: NVDA), the world's largest producer of discrete GPUs, is the top artificial intelligence (AI) stock for many investors. Most of the world's top AI companies use its chips to train their AI algorithms, and it locks in those clients with its proprietary services.
Nvidia's stock has already soared nearly 22,000% over the past decade -- lifting its market cap to $4.3 trillion and making it the world's most valuable company. However, the smart money will likely keep flowing into Nvidia's stock in March as the AI market continues expanding.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Nvidia once generated most of its revenue from selling gaming GPUs for PCs, but the lion's share now comes from its data center GPUs. Unlike CPUs, which are optimized for sequential tasks, GPUs are designed to process parallel tasks. That makes them better-suited for processing complex machine learning and AI tasks than stand-alone CPUs.
Nvidia established a first-mover advantage in this market, and it maintained that lead with its Turing (2019), Ampere (2020), Hopper (2022), and Blackwell (2024) chip architectures. It plans to launch its next chip architecture, Rubin, in the second half of this year. It controls more than 90% of the discrete GPU market, while AMD (NASDAQ: AMD) holds a single-digit share.
Nvidia's proprietary programming platform, CUDA (Compute Unified Device Architecture), enables developers to easily create AI applications optimized for its chips. The stickiness of that ecosystem, which includes other prisoner-taking services, reinforces its market dominance.
Nvidia directly invests in some of the fastest-growing AI companies, including OpenAI, and has secured major partnerships with government and commercial customers. In other words, it will continue selling the best picks and shovels for the ongoing AI gold rush.
From fiscal 2026 (which ended in Jan. 2026) to fiscal 2029, analysts expect Nvidia's revenue and EPS to grow at CAGRs of 36% and 37%, respectively. Those are incredible growth rates for a stock that trades at 22 times forward earnings. It also repurchased a whopping $40.1 billion in shares in fiscal 2026, and it still has $58.5 billion left in its current buyback authorization.
Nvidia faces competition from AMD's cheaper data center GPUs and Broadcom's (NASDAQ: AVGO) custom AI accelerators, while export restrictions continue to throttle its chip sales to China. Yet it should easily overcome those challenges as it remains a linchpin of the AI market -- so it's still a great growth stock for long-term investors to accumulate.
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 8, 2026.
Leo Sun has no position in any of the stocks mentioned. 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.
The Artificial Intelligence (AI) Stock That Smart Money Is Buying This March was originally published by The Motley Fool
Sign in to access your portfolio
AI Description
The article highlights Nvidia as a leading AI chipmaker, emphasizing its significant role in the AI industry. It discusses Nvidia's market performance and its strategic partnerships with top AI companies.