AI Research

This Artificial Intelligence (AI) Stock Has Big Potential and a Surprisingly Low Price

Published

2 months ago

July 26, 2025

This AI giant dominates the market, and despite its explosive growth, the stock might be cheaper than you think.

If you’re looking for massive growth potential, check out artificial intelligence (AI) stocks. According to the U.N., the AI market is set to explode from a $189 billion valuation in 2023 to nearly $5 trillion by 2033. However, despite these massive projections, one of the most popular AI stocks on the market today remains surprisingly cheap.

This popular AI stock is cheaper than you think

Looking for an AI stock that can directly benefit from a massive jump in demand over the next decade and beyond? Check out Nvidia (NVDA -0.12%). While many investors are already familiar with the company, you may not realize how cheap the stock actually is. Fortunes have already been made with Nvidia stock. But there’s still plenty of room left to run.

Before we jump into Nvidia’s surprisingly cheap valuation, let’s quickly review what makes this stock so special.

Nvidia is the largest GPU stock in the world. Its hardware powers data centers worldwide — data centers that AI developers rely on to build, train, and deploy their models. End users, too, rely on data centers to use AI services, putting Nvidia’s GPUs at the center of the AI value chain. Recent estimates suggest that the company may have a market share of 90% or more for GPUs designed for AI use cases.

How did Nvidia get so dominant? According to William Blair analyst Sebastien Naji, Nvidia invested heavily to develop “the broadest ecosystem” of software tools and developers, which essentially allows it to control both the hardware and software components of its GPUs. “And so it’s just so much easier to build an application, build an AI model on top of those chips,” Naji adds.

Image source: Getty Images.

Nvidia got a lead on the AI GPU market through early investment. Its software focus, meanwhile, allowed users to customize their chips, creating a “stickiness” to its products. Switching to a competing chip isn’t just a matter of hardware, but also software integration, providing Nvidia with a durable moat around its business model.

Nvidia’s sales have grown in the heavy double digits for years. And its gross margins lead the industry. And yet, as we’ll see, shares remain surprisingly cheap.

Is now the time to invest in Nvidia?

On the surface, Nvidia stock looks expensive. Shares trade at nearly 30 times sales — a huge premium for a multitrillion-dollar stock. But on a profit basis, the situation improves dramatically.

Yes, Nvidia shares are trading at 54 times trailing earnings. But because sales are growing so quickly, it’s important to look at the company’s forward valuation. Based on what the company is expected to earn over the next 12 months, shares trade at just 39 times forward earnings.

Meanwhile, Intel, another chipmaker, is struggling to remain profitable. Its revenues are expected to fall by around 5% over the next fiscal year. The firm failed to invest in the AI opportunity, and the company is struggling to remain relevant in the next-gen GPU space. By comparing Intel and Nvidia on some key metrics, we can easily ascertain Nvidia’s core strengths. Nvidia is positioned well for the near term and the long term. Intel’s fate, meanwhile, remains uncertain for both time frames.

NVDA Revenue Growth Estimate for Current Fiscal Year data by YCharts

Compared to competitors like Intel, Nvidia is doing quite well. But is 39 times earnings actually a “bargain” valuation? It is if you keep doing the math. The AI market is expected to continue growing by 20% to 30% annually for nearly a decade. With the S&P 500 (^GSPC 0.40%) trading at 30 times earnings, it won’t be long until Nvidia stock trades below the general market based on today’s trading price.

The key here is patience. If you’re willing to hold Nvidia stock for the long term, high sustained growth rates will quickly eat into the up-front valuation premium, making the stock a bargain in hindsight. As with any high-multiple stock, expect plenty of volatility along the way. But if you’re betting on AI stocks for the long haul, Nvidia remains surprisingly cheap for patient shareholders.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.

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AI Research

Marquis Who’s Who Honors Sandra E. Cheung, PhD, for Expertise in Artificial Intelligence

Published

51 minutes ago

September 10, 2025

The Editors

Marquis Who’s Who Honors Sandra E. Cheung, PhD, for Expertise in Artificial Intelligence

Sandra E. Cheung promotes AI literacy and drives technology transformations

She aims to cultivate artificial intelligence literacy among communities across the United States by planting seeds of knowledge that encourage individuals to manage future technology challenges.

BELMONT, CA, September 10, 2025 /24-7PressRelease/ — Sandra E. Cheung, PhD, has been included in Marquis Who’s Who. As in all Marquis Who’s Who biographical volumes, individuals profiled are selected on the basis of current reference value. Factors such as position, noteworthy accomplishments, visibility, and prominence in a field are all taken into account during the selection process.

Dr. Cheung is a distinguished leader in the technology and engineering sectors. Inspired by the emergence of artificial intelligence in the technology sector, she launched AImpowered in 2025, and the nonprofit organization has since been dedicated to educating people on safe and effective use of AI. As the chief executive officer of the firm, she has been instrumental in shaping the organization’s mission to bridge the digital divide and promote AI literacy, and she manages project timelines, coordinates meetings, implements key strategies, and monitors performance. Dr. Cheung also oversees budget expenditures, ensures compliance, and expertly supports her associates in their innovative pursuits.

Through AImpowered, Dr. Cheung offers workshops tailored for both children and adults, emphasizing the importance of in-person interactions for those affected by technological barriers. She is particularly dedicated to supporting individuals who struggle with technology, equipping them with the necessary tools to navigate the evolving landscape of AI. Dr. Cheung is also proud to curate content that helps parents gauge the influence of AI on home and school environments and to promote advocacy for children’s education in this field.

Drawing from her own experiences raising children during the rise of mobile phones, Dr. Cheung aids parents in grasping contemporary challenges posed by rapid technological advancement. Additionally, she prioritizes platforms that empower current technology workers to harness AI in their work. Notably, Dr. Cheung’s efforts through AImpowered prepare both parents and professionals to thrive in an increasingly AI-driven world.

In her comprehensive role, Dr. Cheung relies on experience gained from a series of pivotal professional appointments. From 2021 to 2024, she was the chief of staff and head of operations, strategy and planning at Webex, where she held oversight of operational efficiency and strategic initiatives that supported the company’s growth in collaborative technologies. Between 2018 and 2020, Dr. Cheung excelled as the director of software engineering at Cisco, and her signature leadership was pivotal in driving software development projects that enhanced Cisco’s product offerings.

From 2012 to 2018, Dr. Cheung provided technology and management consulting services at Cadushi, advising organizations on optimizing their technological infrastructure and management practices. Additionally, during her tenure as the senior director of infrastructure engineering and production operations at Yahoo! from 2005 to 2012, she played a critical role in addressing a significant crisis related to data center capacity amid financial constraints. Drawing inspiration from Yahoo!’s engineers, she collaborated with leadership to drive innovation among the company’s teams, inspiring others to look beyond conventional methods and galvanizing teams around a shared vision.

Before joining Yahoo!, Dr. Cheung was the director of network planning, design and analysis at Covad from 2003 to 2005, before which she served as the director of network engineering at Covad Communications from 1998 to 2003. In these positions, she oversaw network infrastructure development and strategic planning. Dr. Cheung began her professional journey in 1994 as a senior member of technical staff at AT&T, where she thrived through 1998.

The pursuit of service opportunities prompted Dr. Cheung to accept an appointment as the co-chair of the engineering council at Founders Creative in 2025, through which she contributes her expertise to foster innovation within the organization. Her commitment to promoting and advancing women in various fields is reflected through her membership in Women in Collaboration and her substantial leadership tenure with the Girl Scouts; additionally, Dr. Cheung is a proud co-founder and the acting president of the Silicon Valley Ice Skating Association.

Dr. Cheung’s academic credentials are impressive and include a Bachelor of Science in computer science from Florida Institute of Technology, which she completed in 1988. She also holds a Doctor of Philosophy in computer science from the University of Florida, which she proudly earned in 1993. Dr. Cheung credits her adaptability and dedication to making a positive impact on others as central to her success across diverse personal and professional platforms.

Looking toward the future, Dr. Cheung aims to cultivate artificial intelligence literacy among communities across the United States by planting seeds of knowledge that encourage individuals to manage future technology challenges. She emphasizes education as a foundation that must extend throughout all stages of learning so that younger generations can navigate change without anxiety while remaining grounded in core human values. Through her initiatives, Dr. Cheung seeks to foster collaboration and help people embrace transformative advancements.

About Marquis Who’s Who®:

Since 1899, when A. N. Marquis printed the First Edition of Who’s Who in America®, Marquis Who’s Who® has chronicled the lives of the most accomplished individuals and innovators from every significant field of endeavor, including politics, business, medicine, law, education, art, religion and entertainment. Who’s Who in America® remains an essential biographical source for thousands of researchers, journalists, librarians and executive search firms around the world. The suite of Marquis® publications can be viewed at the official Marquis Who’s Who® website, www.marquiswhoswho.com.

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