If This Forecast Proves to Be True, Nvidia's Stock Could Still Be a Bargain Buy Today

Industry Insights - Spending on artificial intelligence is projected to grow by more than 30% in both 2026 and 2027, with AI spending expected to top $2.5 trillion in 2026, marking a 44% increase from the previous year, and rising to $3.3 trillion in 2027, representing a further increase of around 32% [5][6] - Despite concerns about the effectiveness of AI investments, the growth in spending indicates strong long-term potential for companies involved in AI development, including Nvidia [4][6] Company Performance - Nvidia's market capitalization stands at approximately $4.7 trillion, making it the most valuable stock on the market [2][8] - The company reported a growth rate of 62% in its last earnings report, with sales totaling $57 billion for the period ended October 26, 2025, and net income rising by 65% to $31.9 billion [8] - Nvidia's current trading at a forward price-to-earnings multiple of less than 25 is considered reasonable for a leading AI stock, suggesting it may be a good buy at current levels [9]