1 Unstoppable AI Stock That Could Skyrocket When the Market Comes to Its Senses

The market is in a bit of a weak spot right now, with fears of a trade war erupting. The market is uncertain, which is why many stocks have taken a hit over the past few days. This has caused some incredible bargains to open up, including one of the top stocks over the past two years: Nvidia (NASDAQ: NVDA).

The market has sold off Nvidia stock to ridiculous levels, and when the market comes to its senses, this stock could easily come roaring back. As a result, I think investors need to take every opportunity during this sell-off to load up on Nvidia shares, as the price is almost too good to be true at this point.

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Nvidia's GPUs are powering the AI arms race

Nvidia makes graphics processing units (GPUs) and the infrastructure to support their usage, like its CUDA software. GPUs have become vital in today's world because of their ability to compute in parallel. Plus, these GPUs can be connected in clusters to further amplify their computing power, making them a go-to choice when tackling tasks requiring a huge amount of computing power.

Artificial intelligence (AI) has been the biggest user of GPUs to date, and the demand for Nvidia's GPUs has been insatiable. Many of the big tech companies have announced record capital expenditure spending for 2025, and a large chunk of that will go to Nvidia. All of them see the industry increasing its AI use, so they are loading up on GPUs, which benefits Nvidia.

This would point to another year of strong growth for Nvidia, but some investors are worried that tariffs could throw Nvidia off of its trajectory. When Nvidia's management was asked about what the effect of a tariff would be, they weren't sure because they didn't know exactly what the U.S. government was planning.

Most of Nvidia's components come from Taiwan, which seems to have sidestepped tariff threats after Taiwan Semiconductor Manufacturing announced multiple new facilities to be built in the U.S. ($100 billion worth), which will eventually shift Nvidia's supply chain from Taiwan to the U.S.

While Nvidia may not be directly affected by tariffs, the prevailing fear is that tariffs will harm the economy, causing overall spending to decrease, which could cause companies to cut their discretionary spending.

However, I'd argue that Nvidia GPUs aren't really discretionary spending. Increasing AI computing power (or cloud computing capacity) is basically table stakes for operating in tech right now. While observers will need to see how this thesis plays out, I think these fears and how they affect Nvidia are way overblown. After all, Nvidia issued incredibly strong guidance for the first quarter despite knowing that tariffs were coming in some fashion.

Nvidia's price tag is incredibly cheap for the growth that it's putting up

For Q1 of fiscal year 2026 (ending around April 30), Nvidia expects revenue of $43 billion, up 65% from last year. That's huge growth for Nvidia, and investors should be fairly confident that this trend will continue as the AI arms race continues. For FY 2026, Wall Street analysts expect revenue growth of 56%, bringing Nvidia's revenue to more than $200 billion.

Investors are getting wrapped up in the short-term news headlines about trade wars. Over the long term, the AI buildout will have a much stronger effect. As a result, I'm focusing on where the industry is moving five years from now, not five days from now. By doing this, it allows me to see how much of a bargain Nvidia's stock has become.

NVDA PE Ratio (Forward) data by YCharts

At 40 times trailing earnings and 26 times forward earnings, Nvidia's stock is nearing dirt cheap levels, especially considering its strong growth rate.

Nvidia has a lot going for it, with only headline fears working against it. As a result, this is a perfect opportunity to load up on shares -- as long as you have your eyes on a five-year time frame, not the short term.

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Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.