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These dynamics have served as a bellwether for Nvidia throughout the AI boom. But according to Wall Street, the AI infrastructure revolution is just getting started.

According to management consulting firm McKinsey & Company, an estimated $7 trillion is expected to be spent on AI infrastructure over the next five years. In the near term, research from Goldman Sachs indicates that the hyperscalers will spend nearly half a trillion dollars on AI buildouts just next year.

It’s this rise in AI infrastructure that has technology analyst Beth Kindig of the I/O Fund calling for Nvidia to reach a $6 trillion valuation by 2026 — implying more than 30% upside from its current market capitalization of roughly $4.5 trillion.

According to data from Yahoo! Finance, a total of 64 sell-side analysts cover Nvidia stock. Among these researchers, 59 place a rating of “buy” or an equivalent on Nvidia stock. Only one analyst rates Nvidia stock as a sell.

While the topics explored above provide some qualitative details surrounding Nvidia’s bullish prospects, let’s dig into the numbers to add some quantitative color around why so many on Wall Street still see Nvidia stock as an attractive value.

A valuation metric that I like to look at is the forward price-to-earnings (P/E) multiple. This ratio accounts for projected earnings growth in a company — potentially giving investors a glimpse of how optimistic Wall Street is over a company’s future profit potential.

In the chart above, investors can see how Nvidia’s forward P/E has fluctuated throughout the AI revolution. Two key details stick out from the analysis above.

First, Nvidia stock has clearly enjoyed some outsized momentum over the last few months, leading to a prolonged period of valuation expansion. That said, the company’s forward earnings multiple of 40 is materially lower than the prior peak of 51, witnessed early last year.

This is an important nuance to digest. What the trends above are implying is that despite having more tailwinds behind it now — and a greater ability to command even more record profits — Nvidia stock is actually cheaper today than it was in early 2024.

In this case, I am aligned with Wall Street. I think Nvidia is poised to benefit from numerous secular tailwinds as the AI infrastructure boom accelerates. While the stock is not inexpensive, per se, it trades at a relative discount compared to earlier stages of the AI revolution. That makes it an attractive buy-and-hold opportunity for long-term investors right now.

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Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Goldman Sachs Group, Home Depot, Intel, International Business Machines, Meta Platforms, Microsoft, Nvidia, Oracle, Walmart, and Walt Disney. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.

Meet the Newest Artificial Intelligence (AI) Stock in the Dow Jones. It Has Soared 268% Since Early Last Year, and It’s Still a Buy Right Now, According to Wall Street was originally published by The Motley Fool