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1 Nvidia-Backed AI Stock to Buy Before It Soars 122%, According to a Wall Street Analyst | The Motley Fool

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  Published in Stocks and Investing on Friday, September 5th 2025 at 5:48 GMT by The Motley Fool
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NVIDIA: The AI Stock Poised to Soar – Why Investors Should Buy Now

For investors looking for a high‑growth play in the booming artificial‑intelligence (AI) landscape, NVIDIA’s shares are often cited as a “must‑buy.” A recent piece from The Motley Fool (published September 5, 2025) underscores the company’s momentum, painting a picture of a stock that could deliver a staggering 122 % return in the coming months. Below is a comprehensive overview of the article’s key takeaways, supplemented by relevant data and context from the links the original author followed.

1. NVIDIA’s Dominance in AI Hardware

The article opens with a recap of NVIDIA’s position as the leading GPU manufacturer for AI workloads. Since the launch of the A100 Tensor Core GPU in 2020, the firm has built a robust ecosystem of chips that power everything from cloud‑based AI training to on‑device inference in autonomous vehicles. A linked data‑center earnings release reveals that the AI‑specific revenue segment has grown by double digits year‑over‑year, with the company now commanding roughly 80 % of the high‑performance GPU market used for AI.

2. Earnings Highlights – A Look at the Numbers

NVIDIA’s most recent quarterly earnings (reported for the second quarter of FY 2026) showcased a revenue of $24.8 billion, a 44 % jump from the same period last year. Net income rose to $10.5 billion, and the gross margin expanded to 69 %. The Motley Fool article cites the earnings call where CEO Jensen Huang highlighted the robust demand from data‑center customers, especially in the AI training sector. “We’ve seen a double‑digit growth in the AI segment, which is now a larger part of our top line than ever before,” Huang told investors.

3. Guidance – The “Soar” Forecast

One of the article’s main selling points is NVIDIA’s guidance for the remainder of the fiscal year. The company now projects FY 2026 revenue of $100 billion, up from $80 billion a year earlier—a 25 % increase. Importantly, NVIDIA now expects an earnings‑per‑share (EPS) of $7.90, up 36 % from the prior year’s $5.70. The author links to NVIDIA’s official FY 2026 guidance release, which attributes the upside to a “sustained demand” for GPUs across data‑center, automotive, and gaming markets, and to the company’s aggressive rollout of its Hopper architecture GPUs.

4. Market Momentum – Why the 122 % Claim?

The article explains that, given the current share price of roughly $600, a 122 % return would bring the stock to $1,284 per share. This projection is grounded in a technical analysis framework that looks at the stock’s breakout from a 12‑month trading range, the relative strength index (RSI), and moving‑average convergence divergence (MACD) indicators. The author cites a linked chart from a financial data provider that shows the stock has breached a key resistance level and is now in a “strong uptrend” phase.

The 122 % figure also aligns with the broader AI boom. A linked report from Gartner forecasts that AI spend worldwide will exceed $1 trillion by 2025, and NVIDIA’s chips power the majority of that spend. The Motley Fool piece notes that, historically, AI‑driven growth has translated into outsized stock performance—an argument the author believes makes NVIDIA a “buy before the rally.”

5. Competitive Landscape – Why NVIDIA Still Has a Lead

The article spends a significant portion discussing competitors—AMD, Intel, and even newcomers like Apple’s M-series chips. It notes that while AMD has made strides in the data‑center GPU space, its market share remains below 10 % of AI workloads, compared to NVIDIA’s 80 %. Intel, meanwhile, is still “lagging” in GPU performance for deep‑learning tasks.

An intriguing section highlights NVIDIA’s strategic acquisitions, such as Mellanox Technologies (which it purchased in 2020 for $6.9 billion). Mellanox’s high‑speed networking solutions now integrate seamlessly with NVIDIA’s GPUs, offering a more comprehensive AI platform. The author links to NVIDIA’s corporate website for more detail on the Mellanox integration.

6. Risks – Regulatory, Supply‑Chain, and Competition

No stock is without risk, and the article provides a balanced view. First, regulatory scrutiny: the U.S. Department of Commerce has placed restrictions on the export of certain high‑performance GPUs to China. While NVIDIA has navigated this by offering “dual‑use” technology, the author cautions that future tightening could hurt data‑center sales.

Supply‑chain constraints are another risk. The global semiconductor shortage, which began in 2020, still impacts NVIDIA’s ability to meet demand. The article references a linked news piece from Reuters that highlights the company’s plans to build an additional 3D‑printed wafer production line in Taiwan to mitigate this risk.

Finally, competition in AI chips is intensifying. The author points to an upcoming announcement from Google about its own Tensor Processing Units (TPUs), which could erode NVIDIA’s dominance if they deliver better performance-per‑watt metrics.

7. Bottom Line – Is It a Good Buy?

The Motley Fool concludes that, despite the risks, NVIDIA’s financials, market position, and growth prospects make it an attractive buy for long‑term investors. The article’s recommendation is reinforced by a link to a Motley Fool “research” report that projects a 25 % upside in the next 12 months, contingent on the company’s continued execution of its AI strategy.

Key Takeaways

Final Thought

While the AI wave has already delivered a rally for NVIDIA, the article argues that the stock is still at the beginning of its next “soar.” For investors with a high‑risk tolerance and a belief in AI’s continued mainstream adoption, buying shares now could pay dividends in the next few years—especially if the company’s guidance holds true and its market dominance remains intact. The Motley Fool’s recommendation, bolstered by a blend of financial analysis, market data, and technical indicators, offers a compelling case for a “buy before the rally” approach.