Nvidia (NASDAQ:NVDA) continues to be the one to beat when it comes to investing. The semiconductor company has seen shares surge, causing it to go through yet another stock split this month. And now, with shares at a more affordable level, some Canadian investors might wonder if they should take advantage.
In short, yes. Nvidia stock has been performing well for a reason, still offering strong value for long-term holders. So, let’s get into what some of those reasons are.
High demand
The reason Nvidia stock hasn’t stopped climbing comes down to demand. Nvidia stock’s graphic processing units (GPU) are in high demand for artificial intelligence (AI) training, driving significant revenue growth. Furthermore, its CUDA software platform has created a robust competitive edge.
Investors saw this competitive edge during its most recent earnings report. Nvidia reported record revenue in its data centre segment, driven by strong demand for AI-related products. Nvidia reported US$22.6 billion in revenue for the first quarter of fiscal 2025, a 427% year-over-year increase.
This shows strong overall performance, driven by high demand for AI-related products. Continued high demand for new products like the H200 chips and Blackwell architecture indicates sustained future revenue.
Diversification
Now, let’s say that demand starts to drop (which doesn’t look likely anytime soon). Nvidia stock is also diversified, with revenue from its data centres. Nvidia’s expansion into international markets, particularly in Asia, showcases its ability to tap into growing tech markets. Beyond GPUs, Nvidia’s involvement in data centres, gaming, and professional visualization sectors diversifies its revenue streams.
The data centre alone saw a 432% increase in revenue, reaching US$21.4 billion. However, its automotive revenue is also rising. This increased 42% to US$896 million of total revenue during the company’s recent earnings report.
So, while GPUs are a significant part of its current and near-term future, Nvidia stock has always been a few steps ahead. This is why it continues to be a strong investment, especially compared to other semiconductor companies.
Stil valuable
Nvidia’s performance has been far higher than any of its peers in the semiconductor industry. This can be seen below by comparing its competitors in the semiconductor field.
| Company | Revenue (Q1 2025) | Year-over-Year Growth (%) | Data Centre Revenue (Q1 2025) | Automotive Revenue (Q1 2025) | P/E Ratio |
| Nvidia | $22.6 billion | 427% | $21.4 billion | $0.896 billion | 45 |
| AMD | $5.9 billion | 71% | $2.1 billion | $0.321 billion | 29 |
| Intel | $19.6 billion | 12% | $6.8 billion | $0.102 billion | 15 |
| Qualcomm | $11.1 billion | 7% | $3.4 billion | $0.045 billion | 18 |
| Broadcom | $8.6 billion | 6% | $2.9 billion | $0.210 billion | 22 |
As you can see, Nvidia stock certainly does look more expensive when it comes to its price-to-earnings (P/E) ratio. But there’s a reason for that, and that’s its outlook. Nvidia stock continues to predict further strong guidance over the next several quarters and through 2025. Revenue is predicted to be between US$23 billion and US$24 billion for the next quarter alone. This will be driven by high demand for AI and data centre products.
Data centre growth will also continue for Nvidia stock. Revenue should hit between 40% and 50% year over year. Add in growth from other sectors, and it’s certainly looking like a tech stock that offers more value for investors, even as the share price continues to climb.
