1 Trillion Reasons to Invest in Nvidia

Nvidia (NASDAQ: NVDA) has been a phenomenal investment over the past few years. And even though some investors think the company's shares are overdue for a steep, sustained correction, the tech leader's march forward is likely to continue over the medium term. Recently, Nvidia's CEO, Jensen Huang, gave even more reasons -- in the neighborhood of one trillion -- to be bullish on Nvidia's prospects. Here's why investors can still safely add this stock to their portfolios.

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A new era of AI

First, let's start with Nvidia's most recent quarterly report, for its fourth quarter and full fiscal year 2026, ending on Jan. 25. The company's revenue for the year was $215.9 billion, up 65% year over year. The company's data center segment continues to be the star of the show. Can it maintain its momentum? Apparently so. At a recent conference, Huang said Nvidia expects about $1 trillion in purchase orders for its Blackwell and Vera Rubin chips through 2027.

There are several things to note about this guidance. First, last year, Nvidia projected $500 billion in revenue for Blackwell and Vera Rubin through 2026. The fact that the company is now forecasting twice as much through 2027 strongly suggests that demand for its AI chips isn't exactly slowing down. For what it's worth, Nvidia had predicted as much: Upon projecting half a billion in revenue from Blackwell and Vera Rubin during an earnings conference call last year, the company's CFO, Colette Kress, also said, "The number will grow."

Second, this forecast doesn't include the company's other products. So, Nvidia could generate over $1 trillion in sales through 2027, more than four times its revenue in its last fiscal year. Also of note, the company plans to roll out its Vera Rubin AI platform in the second half of 2026. Yet Nvidia projected revenue of $78 billion for the first quarter of its fiscal year 2027, an almost 77% increase compared to the same period last year.

Agentic AI apps -- that can autonomously accomplish complex tasks without human intervention -- are the next big thing in the industry, at least according to Huang. And the increased computing demand to train and run these apps will drive rising demand for AI chips, positioning Nvidia, the industry's undisputed leader, to continue reaping immense financial benefits. The company's run might not be over yet. Meanwhile, Nvidia is trading at 30x forward earnings, which is well above the 20.9x average for information technology stocks.

If any company deserves a steep premium, it is Nvidia, given its outstanding financial results in a rapidly growing market and the wide moat it has built through its best-in-class tech and CUDA platform. The bottom line: Nvidia remains a strong buy.

Prosper Junior Bakiny has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.