The past few years have been undeniably profitable for Nvidia (NVDA 4.41%) investors. The stock price has surged more than sevenfold over the past two years, and today, it topped the charts as the world’s most valuable company in terms of market cap. The stock was up as much as 4.7% Wednesday morning. At 12:32 p.m. ET, the stock was still up 4.1%.

The advent of artificial intelligence (AI) has fueled Nvidia’s relentless rise, and a new U.S. government initiative shows there’s still a long runway for growth ahead.

Image source: Getty Images.

A new AI initiative

One of a multitude of announcements by the Trump administration yesterday was the launching of Stargate, a project designed to increase AI infrastructure in the U.S. President Trump announced the joint venture, which will include investments from Oracle, OpenAI, and SoftBank of as much as $500 billion over the next four years. The project will focus on increasing the number of American data centers — and the energy needed to power them.

The group named several “key initial technology partners” — and beneficiaries of the initiative — including Nvidia, Microsoft, and Arm Holdings.

Nvidia pioneered the graphics processing units (GPUs) that underpin most AI systems. Furthermore, these advanced chips are a staple in data centers that house these AI models. Nvidia has absolutely dominated the data center GPU space, with a market share of 98% in both 2022 and 2023. While the 2024 figures have not yet been released, Nvidia is expected to continue to be the undisputed leader.

Now that it’s the world’s most valuable company, some investors might believe the time to buy Nvidia has already passed, but these developments show that’s not the case. Furthermore, the stock is currently selling for just 32 times next year’s expected sales, a remarkably attractive price for a company with so much opportunity.

That’s why Nvidia stock is still a buy.