The past few years have witnessed a resurgence in stock splits, a practice that was common in the 1990s but had waned over time. Recently, it has been rediscovered by a new generation of investors, reinvigorating interest in the stock market. Several companies that have experienced strong growth and delivered impressive financial results have made the decision to split their shares, resulting in soaring stock prices. If I could only buy one stock right now, it would undoubtedly be Nvidia.
A Renaissance for Stock Splits
This year alone has seen several notable stock splits from companies that have demonstrated years—if not decades—of outperformance. For example, Nvidia executed a 10-for-1 stock split payable on June 7, 2024. Chipotle followed suit with a 50-for-1 split on June 25, 2024, and Broadcom delivered a 10-for-1 split on July 12, 2024. Super Micro Computer also performed a 10-for-1 split on September 30, 2024.
These stock splits are significant because they show confidence in the company’s future growth and are typically a sign that a stock has appreciated significantly. Investors seeking to capitalize on stock-split stocks may ask which one is the best to buy right now. Without a doubt, if I had to buy one stock, it would be Nvidia, thanks to its ability to stay ahead of technological trends and continuously innovate.
Nvidia: The Unstoppable Force in AI
While many investors focus on artificial intelligence (AI) as the primary reason to buy Nvidia stock, there’s more to the story. One of the most compelling aspects of the company is its CEO, Jensen Huang. Huang has an uncanny ability to anticipate the future needs of the technology industry and ensure Nvidia is prepared to meet those needs. This foresight is one of the reasons why Nvidia is my top pick if I had to buy one stock today.
Nvidia pioneered the development of the graphics processing unit (GPU), revolutionizing the gaming industry in 1999. But Nvidia didn’t stop there. The company adapted the GPU technology to accelerate supercomputing by 2006. Fast forward to today, and the GPU is the gold standard for cloud computing and data centers around the world. Nvidia now commands a dominant 98% of the data-center GPU market, according to TechInsights.
Huang’s ability to stay ahead of the curve doesn’t end with GPUs. Back in 2013, Nvidia began positioning itself to tackle the AI revolution, long before AI technology had reached the mainstream. By the time AI surged in popularity in early 2023, Nvidia was well-prepared to reap the rewards of the groundwork Huang had laid a decade earlier.
Financial Results That Speak Volumes
Investors looking to buy one stock should look closely at Nvidia’s financial performance. The numbers speak for themselves. In its fiscal 2025 second quarter (ending July 28), Nvidia generated record revenue of $30 billion, which represented a 122% increase year-over-year. More impressively, data-center revenue hit a record $26.3 billion, soaring 154%.
Nvidia’s profits also grew dramatically, with diluted earnings per share (EPS) reaching $0.67, an increase of 168%. Management remains confident in the company’s future, guiding for revenue of $32.5 billion in the upcoming quarter. Although this represents slower growth than the triple-digit increases seen over the past year, Nvidia is still on track to deliver year-over-year growth of 79%.
The company’s stellar performance, combined with its leadership in the AI space, makes it the stock to own. If I had to buy one stock in today’s market, Nvidia would top the list.
Why Now Is the Time to Buy Nvidia
Some may argue that the time to buy Nvidia has passed, given the stock’s meteoric rise over the past year. After all, Nvidia’s stock has surged 837% since the start of 2023 and recently hit new record highs. It’s natural to wonder if the stock still has room to grow. However, I believe the best is yet to come, and here’s why.
We are still in the early stages of the AI revolution. Nvidia’s technology is central to this industry, and as AI use cases continue to expand, Nvidia is well-positioned to capitalize on this growth. Estimates of the future size of the generative AI market vary, but Bloomberg Intelligence predicts the market could be worth $1.3 trillion by 2032. Even more bullish estimates come from Ark Invest, which suggests the AI software market could generate incremental spending of $13 trillion by 2030, with potential upside of up to $37 trillion.
While Nvidia’s stock is currently trading at 64 times earnings and 35 times sales, it’s important to note that analysts’ estimates for future earnings growth remain conservative. Wall Street expects Nvidia to generate earnings per share of $4.05 for fiscal 2026, which translates to a forward price-to-earnings (P/E) ratio of 33—only slightly higher than the S&P 500’s multiple of 30. Given Nvidia’s projected 52% annual profit growth over the next five years, the stock’s current valuation seems reasonable.
If you’re looking to buy one stock with long-term growth potential, Nvidia remains a compelling choice. The company’s leadership in AI, its strong financial performance, and its ability to innovate make it a stock worth owning.
Conclusion: Nvidia Is the Stock to Own
In conclusion, if I could only buy one stock right now, it would be Nvidia. The company’s dominance in the AI industry, combined with its ability to stay ahead of technological trends, makes it an exceptional investment opportunity. Nvidia’s stock may have already experienced significant growth, but the company’s best days could still be ahead as AI continues to evolve and expand. For those seeking to buy one stock that offers long-term growth potential, Nvidia stands out as the clear choice.
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