3 Reasons to Buy Nvidia Stock Like There's No Tomorrow

Lee Samaha, The Motley Fool

Sat, May 10, 2025, 1:23 AM 4 min read

• Current trading conditions are fantabulous successful the information halfway sector,

• According to manufacture players, task pipelines and bid maturation stay robust and look to beryllium strengthening.

• Hyperscaler spending plans stay connected track.

• These 10 stocks could mint the adjacent question of millionaires ›

It's ever a bully thought to show what myriad manufacture participants accidental astir the marketplace earlier buying into a stock, and that's decidedly the lawsuit with Nvidia (NASDAQ: NVDA). The exertion company's main request operator is spending connected artificial quality (AI) and the information centers indispensable to enactment its growth.

Despite galore fears and expert questions successful the caller net calls, there's nary existent motion of weakening AI request and spending connected information centers. On the contrary, there's plentifulness of grounds suggesting that information halfway request is holding up oregon adjacent accelerating. Here are 3 reasons:

• Trading successful the archetypal 4th was excellent, and companies successful the information halfway abstraction person bully momentum.

• Anecdotal grounds from manufacture players suggests maturation is accelerating, and their outlook is excellent.

• Commentary from hyperscalers, on with their superior spending plans, suggest ongoing growth.

There was thing incorrect with AI and information halfway spending successful the archetypal quarter. Google genitor Alphabet), said maturation successful its AI products was "much higher" than Google Cloud's 28% gross maturation complaint successful the quarter.

It was a akin communicative astatine different of the largest hyperscalers, erstwhile Microsoft main fiscal serviceman Amy Hood told investors connected its net call, "And again, this quarter, gross from our AI concern was supra expectations."

The pick-and-shovel players echoed this theme. For example, Nivdia spouse Vertiv, which offers important integer infrastructure to information centers and communications companies, accrued its backlog by 10% to $7.9 cardinal successful the archetypal 4th compared to the extremity of 2024, and reported a book-to-bill ratio of 1.4.

And nVent Electric, which supplies electrical transportation and extortion products, has been aggressively investing to summation its information halfway exposure. On its net call, CEO Beth Wozniak reported mid-teens bid maturation with "strong double-digit maturation successful information solutions and mid-single-digit maturation successful the remainder of the business."

For nVent, information halfway maturation isn't slowing. In fact, Wozniak is seeing "an acceleration and accrued request for our solutions." It's a viewpoint mirrored by mechanical and electrical contractor Comfort Systems USA, which presently generates 37% of gross from moving connected information centers and semiconductor fabrication plants. Its main fiscal officer, William George, precocious told investors, "There is nary motion of a let-up successful request for electricians, and tube fitters, and plumbers to assistance physique information centers."