Is It Too Late to Buy Nvidia Stock?

By Neil Patel – Dec 16, 2025 at 4:52PM ESTKey PointsNvidia shares trade at a very compelling forward P/E ratio of 23, with profits expected to soar.Investors who buy the stock shouldn't be surprised if AI spending slows down. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NVDANvidiaMarket Cap$4.3TToday's Changeangle-down(0.99%) $1.75Current Price$178.03Price as of December 16, 2025 at 3:58 PM ETThis thriving AI business has been an unbelievably successful investment in recent years.Nvidia (NVDA +0.99%) has clearly been the single biggest winner thus far in the nascent artificial intelligence (AI) age. Its powerful graphics processing units have benefited from incredible demand as hyperscalers look to build out their technical infrastructure. No company can afford to get left behind, which has led to rapid revenue growth for Nvidia. It's not a surprise that this top AI stock has surged 1,230% in the past five years (as of Dec. 15). After such a monumental gain, and with a market cap of over $4.3 trillion, is it too late to buy Nvidia shares? Image source: Nvidia. Is Nvidia stock undervalued? Even with such an impressive track record, it's easy to believe that this stock is still undervalued. Nvidia shares trade at a forward price-to-earnings ratio of 23. For comparison's sake, the S&P 500 trades at a multiple of 22.3. Nvidia's net income is projected to increase at a compound annual rate of 43% between fiscal 2026 (ending January 2026) and fiscal 2028, according to Wall Street estimates. That kind of projection means that it's not too late to buy shares, although returns going forward won't mimic the past. ExpandNASDAQ: NVDANvidiaToday's Change(0.99%) $1.75Current Price$178.03Key Data PointsMarket Cap$4.3TDay's Range$174.91 - $178.1952wk Range$86.62 - $212.19Volume4.1MAvg Vol192MGross Margin70.05%Dividend Yield0.02% Focus on the long term The most obvious risk investors should be mindful of is a possible downturn in the AI market, which could pressure demand and revenue for Nvidia. This revolutionary technology continues to show promise, but so much capital has quickly flowed into the industry that a slowdown wouldn't be surprising. Advertisement That's why it's critical that prospective investors maintain a five- or 10-year time horizon as part of their investment thesis.About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelRead NextDec 16, 2025 •By Leo Sun2 Trillion-Dollar Tech Stocks to Double Up on Right NowDec 16, 2025 •By Stefon WaltersThink It's Too Late to Buy Nvidia Stock? Here's the 1 Reason Why There's Still Time.Dec 16, 2025 •By Geoffrey SeilerThe Evidence Is Piling Up: Should You Buy Nvidia Before 2026?Dec 16, 2025 •By Keithen DruryIs Nvidia the Top Artificial Intelligence Stock to Own in 2026?Dec 15, 2025 •By Keithen DruryWhere Will Nvidia Stock Be in 5 Years?Dec 15, 2025 •By Jeff SantoroStock Market Today, Dec. 15: Nvidia Gains on Reports of Strong H200 Demand From China