Did you miss the chance to invest in Apple back in 2012? Have you ever thought, “If only I had bought Apple stock when the iPhone was just taking off…”?
Here’s the thing; opportunities like Apple don’t come around often. But when they do, they’re usually disguised as something “too expensive” or “too late.” What if there’s another tech company today that might be in a similar position?
That’s why it helps to take a step back and ask: why should you consider investing in the first place? Especially when new technologies start changing the way we live and work.
Take Nvidia, for example. If you’ve heard about the rise of artificial intelligence (AI), you’ve probably come across the name. Learning how companies like Nvidia play a role in growing industries can help you start thinking about the bigger picture and how investing works over the long term.
But is it really the next big thing? Could Nvidia stock still have room to grow? And how do you even begin to evaluate that?
Why Is Everyone Talking About Nvidia?
Nvidia makes graphics processing units (GPUs), which are now essential for running AI models. Ever since ChatGPT launched, demand for Nvidia’s chips has surged. In fact, they’re selling faster than the company can produce them.
But here’s what makes Nvidia truly stand out: it doesn’t just make powerful chips. It’s also spent years developing software tools like CUDA that make it easier for developers to build high-performance applications. That means Nvidia’s products are not only powerful, they’re developer-friendly, too.
As a result, Nvidia has become the go-to supplier for companies building the future of AI.
But Isn’t the Stock Already Too Expensive?
That’s a valid question and a common one.
Nvidia has already delivered huge returns to early investors. So it’s natural to wonder: Is it too late to get in?
Let’s look at a real example to put things in perspective.
A Quick Flashback At Apple in 2012
In 2012, Apple was already the most valuable company in the world. The iPhone and iPad were dominating the tech scene. At the time, Apple’s market cap was around $517 billion.
Sounds like it was fully priced, right?
Wrong.
Even with all that success, Apple’s stock was trading at a price-to-earnings (P/E) ratio of just 13.5 below the S&P 500 average. Why? Because investors thought the company’s growth was slowing down. They didn’t realize the App Store and mobile services were just getting started.
Fast forward to today: Apple is worth around $3 trillion, and its stock has grown more than 10x. A big part of that growth came not just from profits, but from a shift in how investors valued the company.
So What Does This Have to Do With Nvidia?
Good question.
Nvidia today is in a similar spot. It’s already a major player in AI, and its stock has had a big run-up. But many investors are still hesitant. Why? Because they think the growth might slow down.
Yet Nvidia’s fundamentals tell a different story.
Right now, Nvidia trades at a forward P/E of 31. That’s higher than the S&P 500 average (around 20.5), but it’s still lower than some slow-growing companies like Walmart and Costco.
And unlike those companies, Nvidia is growing fast.
Analysts expect Nvidia’s revenue to jump 53% this year and another 24% next year. That kind of growth is rare especially in large-cap companies.
Should You Invest?
That’s ultimately up to you. But here are a few key questions to ask yourself:
- Do you believe AI is the future of technology?
- Do you think Nvidia will continue to be a core part of that future?
- Are you looking for long-term growth, not just short-term gains?
If the answer to all three is yes, then Nvidia might be worth a closer look.
Of course, no stock is guaranteed to repeat Apple’s success. But just like investors underestimated the rise of mobile technology in 2012, many could be underestimating the AI revolution today.
Final Thought
Apple in 2012 looked “fully valued.” But investors who saw its long-term potential reaped the rewards.
Today, Nvidia may offer a similar setup. It’s powering the biggest technology wave of our time. And while it’s not cheap, it might still be undervalued if AI really does reshape the world.
