Nvidia (NASDAQ: NVDA) doesn't develop large language models. It doesn't create computer game franchises. It doesn't manufacture humanoid robots or autonomous vehicles, either. What Nvidia does is create the computing hardware technologies needed for all of these efforts.
Companies around the world are devoting capital to these projects. Nvidia has been, and will continue to be, a leading computing supplier for these technologies. With a product suite that offers hardware, software, and other expertise, it should stay at the forefront as businesses keep advancing and innovating.
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Yet that's not the real reason Nvidia stock can soar over the next five years.
A stock market correction can be a long-term investor's best friend. The Nasdaq Composite index has now entered correction territory since its closing high of 20,174 on Dec. 16. One result of the market downturn is a more than 20% drop in Nvidia shares so far this year.
Large companies are investing hundreds of billions of dollars in artificial intelligence (AI) infrastructure, a big reason Nvidia generated over $130 billion in revenue last year.
Management predicts the first quarter of Nvidia's fiscal 2026, which began in late January, will see 65% revenue growth over the year-ago period. That impressive increase is likely to slow as the year progresses and it faces tougher comparisons. But new catalysts could reaccelerate sales growth in the coming years.
Those include growing business outside of data centers for Nvidia. The company's gaming segment increased revenue by 9% last year. Professional visualization -- which includes a new personal AI supercomputer -- grew sales by 21%, while robotics and automotive revenue soared 55%.
Nvidia has many irons in the fire that could all meaningfully contribute over the next five years. With shares trading nearly 30% below early January highs, now is a good time to follow Warren Buffett's advice and buy this great stock while others are fearful.
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*Stock Advisor returns as of March 10, 2025
Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.