Nvidia ,NVDA 1.74%, Public business company is with one market cap On Friday afternoon, approximately $ 3.8 trillion, and a stock price that is below its all -time high.

The development story of NVIDIA is no less than extraordinary. Revenue has increased by about 400% in the last two years as the AI ​​investment activity has exploded, and it is already after highly impressive multidacade history.

If you are not already NvidiaIs it too late to invest? With the estimated 95% stake of its most important end markets and about $ 150 billion in the last four quarters, it is easy to understand why Nvidia’s reverse can be limited from here. But I will debate on the contrary. Not only do I think the revenue of Nvidia can be much larger than here, but the stock can produce market-beat returns for many years to come.

Nvidia has more growth ability as you can think

There are four main commercial segments in NVidia: data centers, gaming, professional visualizations and automotives.

The data center section is the most important so far. In simple terms, AI-centered applications require a tremendous amount of data processing capacity, and NVDia’s data center accelerator products are widely considered the standard of gold. As mentioned, the company has a major (estimated) 95% market share. And the industry itself is growing rapidly.

In the last one year, the NVIDIA data center segment sales three times, and the $ 120 billion global market is expected to be almost doubled in the next five years for data centers. Data center Capital expenditure – mostly by major technical companies – today is expected to reach $ 1 trillion annually in just three years, today compared to $ 500 billion. In other words, if Nvidia only maintains its major market share, the largest and most important part of its business may be doubled or higher in size by 2030.

Other segments of the company have a lot of rooms. Automotive segment is a major opportunity, as advanced autonomous vehicle technology is still in the early stages of development, and Nvidia already has 20 of the top 30 EV manufacturers on its customer roster. In fact, the GPU is expected to be a market of $ 45 billion by 2030 for motor vehicle applications, and Nvidia also develops more for software systems, security systems and motor vehicle applications.

Capital allocation and a proper assessment

NVIDIA’s free cash flow has long been near the current level, but now that the company is generating cash boatload, the management is allocating it in a favorable manner to shareholders.

The company pays a quarterly dividend, but it is a minuscule a (0.03% yield) for at least now. But a major focus of buyback management is getting. In the first quarter, Nvidia spent more than $ 14 billion on stock RebellionWhich was more than half of the company’s free cash flow. However, keep in mind that the free cash flow of Nvidia has increased by 75% year -on -year, and is expected to increase rapidly for at least the next few years, so it will not be surprising to see the expansion of the bayback with it.

Finally, nvidia is No Trade at 48 times from a cheap stock, 12 months of earnings and about 34 times the sale. But this is not necessary.

The revenue growth (both past and approximate) of NVidia clearly justifies a high P/e ratio. The analyst estimates that an increase in income from 44% year-on-year (ending January 2026) in the current financial year and another 34% in the next year. In addition, a combination of this growth rate and the nvidia’s stellar margin (more than 50%net margin) performs an elevated value-to-selling several warrants. In fact, by some popular matrix, such as price/income-to-development (PEG) ratio, NVDia stock still looks attractive.

The bottom line is that an increasing market opportunity, a combination of shareholder -friendly capital allocation, and a proper assessment may allow Nvidia to increase excellent returns and continue production for the years to come.