Is Nvidia (NVDA) The Best AI Stock Pick of Motley Fool Asset Management?

We just covered the 10 Best AI Stock Picks of Motley Fool Asset Management. Nvidia (NASDAQ:NVDA) ranks #1 (see the 5 Best AI Stock Picks of Motley Fool Asset Management).

Nvidia’s (NASDAQ:NVDA) full-stack AI platform approach is expected to strengthen its moat in the coming months. Its ecosystem spans integrated hardware, networking, and software leadership, particularly CUDA. Two-thirds of data center sales already come from Grace Blackwell systems. Why does it matter? Grace Blackwell combines CPU, GPU, networking, and software into a tightly integrated AI system and locks customers into Nvidia’s full stack.

Networking is also becoming a strong growth driver with strong revenue from NVLink, Spectrum-X, and InfiniBand.

Nvidia’s (NASDAQ:NVDA)  new products are expected to keep boosting its revenue. Its Vera Rubin (R100) architecture, which is optimized for agentic AI. Companies are moving from simply training models to running them at scale, which supports Nvidia’s expectation that its data center revenue could hit $1 trillion.

Nvidia (NASDAQ:NVDA) has a forward P/E of roughly 20x to 22x, almost in line with that of the S&P 500. According to Goldman estimates, Nvidia is expected to drive 21% of the total earnings growth for the S&P 500 in 2026. With Big Tech companies expected to spend a whopping $600 billion on capital expenditures in 2026 alone and new AI use cases coming, Nvidia Corp (NASDAQ:NVDA) remains an attractive buy at the current levels.

Baron Opportunity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2025 investor letter:

“We were early investors in NVIDIA Corporation (NASDAQ:NVDA), over four years before the ChapGPT moment of November 2022, and it has been more than a 10-bagger for the Fund. Several of us spent a full day with founder and CEO Jensen Huang in the Fall of 2018, where he went to …” (Click Here To Read The Letter in Detail)

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.