Nvidia Stock May Be Cheaper than You Think as Jensen Huang Says “Much of the Opportunity Has Not Yet Been Realized”

Nvidia NVDA +1.16% ▲ founder Jensen Huang is making it clear that the AI revolution is still in its early innings. In a new update on Tuesday, Huang argued that the world has only just begun to build the massive systems needed to run artificial intelligence. While Nvidia has already seen its stock price soar over 1,300% since 2023, the CEO believes the biggest gains are still ahead. According to Huang, “Much of the opportunity has not yet been realized,” because the world is currently facing the largest infrastructure project in human history.

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Jensen Huang Creates a Trillion-Dollar Map

Huang compares the rise of AI to the invention of electricity or the internet. He points out that while the world has spent a few hundred billion dollars on AI so far, there are still trillions of dollars’ worth of building left to do. He explained that “We have only just begun this buildout. We are a few hundred billion dollars into it. Trillions of dollars of infrastructure still need to be built.” This massive project is why he believes Nvidia’s chips will remain in high demand for a very long time.

AI Does Create a New Job Market

While many people fear that AI will take away jobs, Huang argues the opposite. He says the “buildout” is so big that it requires an enormous amount of human labor. AI data centers aren’t just about code; they need electricians, plumbers, steelworkers, and technicians to stay running. Huang noted that “The labor required to support this buildout is enormous,” and these roles are currently in short supply. Even as some companies like Block XYZ +0.09% ▲ or Pinterest PINS -1.42% ▼ cut staff to find efficiency, Huang sees a global wave of new, well-paid work appearing to support the tech.

Nvidia Reinents the Five-Layer Cake

To explain how AI works, Huang describes it as a “five-layer cake” made of energy, chips, infrastructure, models, and apps. He says that because AI “reasons” and creates information on demand rather than just storing it, the entire world’s computer systems have to be rebuilt from the ground up. He stated, “This is why the buildout is so large. This is why it touches so many industries at once. And this is why it will not be confined to a single country or a single sector.”

The Market Sees Room to Grow

Even with the U.S. unemployment rate sitting at 4.4%, analysts at Goldman Sachs GS +0.21% ▲ say the shift to AI has been “moderate” so far. Because every company and every nation is now racing to build its own AI systems, the demand for Nvidia’s hardware isn’t slowing down. If Huang is right and trillions of dollars in infrastructure are still missing, the current price of Nvidia might actually be a bargain compared to the automated future he is building.

Is Nvidia Stock a Good Buy Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock (NVDA) based on 38 Buys and one Hold rating assigned in the past three months, as indicated by the graphic below. Furthermore, the average 12-month NVDA price target of $273.61 per share implies 48% upside potential.

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