<div id="readability-page-1"><p><strong>Nvidia </strong><span>(NVDA<span> 0.53%</span>)</span> has been an excellent stock to own over the past few years, as the company has gained the status of having the largest market capitalization in the world. However, given the stock's impressive performance, many investors are likely wondering if there's still room for Nvidia to run. After all, the stock has risen by around 1,000% since the start of 2023.</p> <p>Is investing $10,000 in Nvidia right now a waste of money? Or is it a brilliant investment decision? I think the answer is clear, and there's one long-term trend that guides that conclusion.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjQ0MTAvcGVyc29uLW92ZXJsb29raW5nLWEtZGF0YWNlbnRlci5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjQ0MTAvcGVyc29uLW92ZXJsb29raW5nLWEtZGF0YWNlbnRlci5qcGcmdz03MDA"/></p><p>Image source: Getty Images.</p> </div> <h2>Nvidia has risen alongside AI demand</h2> <p>Nvidia manufactures graphics processing units (GPUs), which are specialized computing devices that can perform multiple calculations in parallel. GPUs were originally designed to process gaming graphics -- some of the most arduous workloads computers saw almost three decades ago. They excelled in this area, but quickly found other uses such as engineering simulations, cryptocurrency mining, and drug discovery. Still, their biggest use case has just emerged: AI training.</p> <p>GPUs can handle a wide range of workloads and process them efficiently, making them ideal for feeding various datasets to train an AI model. Additionally, GPUs can be connected in clusters to amplify computing power, a strategy that AI hyperscalers have taken to the extreme by building AI training clusters with 100,000 or more GPUs.</p> <p>Nvidia dominates the GPU market with a 90% market share. This dominance has enabled it to charge a premium price for its product, resulting in profits that far outpace revenue growth.</p> <p><img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/4908d9e22f72c5e43af98e4943dd0af4.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="456" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/4908d9e22f72c5e43af98e4943dd0af4.png"/></p> <p>NVDA Revenue (TTM) data by YCharts</p> <p>This combination has enabled Nvidia's stock to soar since the AI revolution began in 2023. But is there more upside?</p> <h2>Data center capital expenditures will push Nvidia's stock higher</h2> <p>We've yet to scratch the surface of what an AI-first business environment looks like. As a result, the AI hyperscalers are building data centers at an unprecedented rate to meet the demand. Every AI hyperscaler has announced record capital expenditures for 2025, with most of that money being allocated to data centers. Although this spending may be earmarked for 2025, building a data center is a multiyear process, so we can expect record capital expenditures to continue for the next few years.</p>  <p>This directly aligns with a third-party market study that Nvidia cited during its 2025 GTC event, which projected global capital expenditures on data centers to rise from $400 billion in 2024 to $1 trillion by 2028. In 2024, Nvidia generated $115 billion in revenue from its data center division, which earns it a healthy slice of the data center capital expenditure pie. </p> <p>If Nvidia can maintain its market share within the data center space, it could generate nearly $300 billion in revenue from data centers alone. Considering that Nvidia's trailing-12-month revenue total is just shy of $150 billion, this indicates a significant amount of upside remains in Nvidia's stock. </p> <p>Although it has been a top performer for multiple years, Nvidia has earned that title. Additionally, there is plenty of growth left in the pipeline to continue fueling Nvidia's rise. While it is unlikely to return another 1,000% from here, I believe there is still sufficient growth potential in the data center space, allowing for market-beating returns to be achieved.</p>                                                                            </div>

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<p>Nvidia has seen a remarkable stock increase of around 1,000% since the start of 2023, driven by its dominance in the GPU market and the rising demand for AI. With a 90% market share, Nvidia is well-positioned to benefit from the anticipated growth in data center capital expenditures, projected to rise from $400 billion in 2024 to $1 trillion by 2028. While another 1,000% increase is unlikely, there remains significant growth potential, particularly in the data center sector, suggesting that investing $10,000 in Nvidia could still yield market-beating returns.</p>

- Nvidia has experienced significant stock growth, rising around 1,000% since the start of 2023, largely due to its dominance in the GPU market and the increasing demand for AI training.  
- The company holds a 90% market share in GPUs, which are essential for AI workloads, and is expected to benefit from record capital expenditures on data centers projected to reach $1 trillion by 2028.  
- With potential revenue from data centers estimated at nearly $300 billion, Nvidia still has substantial growth opportunities, suggesting continued market-beating returns despite its past performance.

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Should You Invest $10,000 in Nvidia Stock Right Now?