Nvidia Leads as Cheapest AI Stock Amid Industry Growth
Nvidia's stock is looking like a good deal for investors seeking to capitalize on the artificial intelligence (AI) megatrend. While chipmakers Broadcom and AMD are also benefiting from AI, Nvidia's dominance in graphics processing units (GPUs) and lower valuation make it an attractive option.
According to recent sales and earnings growth, Nvidia continues to benefit from the AI boom. The company's revenue more than doubled year-over-year in the second quarter of fiscal 2027, with net income soaring by 126% to $59.7 billion. Management has issued guidance for strong growth, with a revenue outlook for the third quarter calling for $108 billion - a 90% increase from the prior-year quarter.
Nvidia's dominance in GPUs is not going away anytime soon, with an estimated 86% market share. Even as competition rises, Nvidia remains the leading designer of custom AI processors, and its recent deal with Alphabet to design Tensor Processing Units (TPUs) solidifies its position.