NVIDIA's Long-Term Value in the AI Era: Is Now the Time to Buy Before the $1,000 Milestone?

The artificial intelligence revolution is here, and NVIDIA (NASDAQ: NVDA) is leading the charge. With a market capitalization that has surpassed $4 trillion and a trajectory that suggests it could hit $1,000 per share by 2030, the question for investors is whether now is the time to buy this AI megatrend stock before it potentially reaches this milestone.

Let's start with the fundamentals. NVIDIA's Q4 2024 results were nothing short of extraordinary. The company reported revenue of $39.3 billion, a 12% increase from the previous quarter and a staggering 78% year-over-year growth. Its data center segment, which is now the engine of its growth, generated $35.6 billion in Q4 - up 16% from the previous quarter and 93% year-over-year. This represents a full-year revenue of $115.2 billion for the data center division, a 142% increase from 2023. These numbers are not just impressive, they're indicative of a business that's dominating a market that's only going to grow.

The driving force behind this growth? AI. NVIDIA's Blackwell AI supercomputers have achieved billions in sales during their first quarter, and the company's AI enterprise software is already generating an annualized revenue run rate of $1 billion. As Jensen Huang, NVIDIA's CEO, has noted, AI is advancing rapidly with agentic AI and physical AI setting the stage for the next wave of innovation. The company's strategic partnerships with major cloud providers like AWS, Google Cloud, Microsoft Azure, and Oracle Cloud to deploy GB200 systems globally are further solidifying its position as the go-to provider for AI infrastructure.

Now, let's talk about valuation. As of July 2025, NVIDIA is trading at a P/E ratio of 55.1x, which is significantly higher than the US Semiconductor industry average of 28.0x but lower than its peer group average of 68.3x. This suggests that while the stock is expensive, it's relatively more attractive when compared to its peers. The company's EV/Revenue of 28.2x reflects how much investors are willing to pay for each dollar of revenue generated by NVIDIA, and its P/B ratio of 50.35 shows that the market is valuing the company's equity at a significant premium to its book value.

But here's the key point: these elevated valuations are justified by the company's growth prospects. Analysts have estimated a fair P/E ratio of 63.2x for NVIDIA, meaning the stock is currently undervalued in this context. The company's strong financial performance, leadership in AI, and robust market capitalization all contribute to a compelling valuation story for a high-growth technology leader.

Looking at the long-term picture, the data suggests NVIDIA is well-positioned to continue its dominance. For 2025, revenue is expected to reach approximately $111.3 billion, with strong AI and data center growth driving this expansion. Analysts project that by the end of 2025, the stock could range between $173.78 and $235.48, representing a potential 36% increase from the current stock price. Looking ahead to 2026, projections suggest a range of $200.89 to $428.11.

But the most intriguing forecast is for 2030, where models suggest a price range of $866 to $1,014.09. This projection assumes continued growth in AI adoption, sustained innovation in GPU technology, and NVIDIA's ability to defend its market share against competitors like AMD and Intel. With a conservative compound annual growth rate of 7-10% from the current price of around $174, reaching $1,000 by 2030 is not just possible - it's likely if the company continues to execute on its long-term vision.

Of course, no investment is without risks. The company faces rising competition from AMD and Intel, and there are concerns about potential margin compression as the AI market matures. Regulatory scrutiny around AI infrastructure and global supply chain pressures are also factors that could temper growth. But for a growth investor focused on the long-term, these risks seem secondary to the opportunity.

NVIDIA's leadership in high-performance computing and its deep integration into enterprise cloud stacks provide a strong foundation for continued revenue expansion. The company's recent introduction of the Blackwell architecture, which promises a 10x improvement in energy efficiency, addresses growing concerns about the environmental impact of data centers and AI workloads. And with AI spending projected to exceed $200 billion by 2028, NVIDIA is well-positioned to benefit from the ongoing digital transformation across industries.

For investors considering whether to buy before the $1,000 milestone, the answer is clear: now is the time. While the stock is not cheap, it's trading at a price that reflects strong fundamentals and a compelling long-term growth story. The company's strategic alignment with the AI megatrend, combined with its robust financial performance and innovation in key markets, makes it a compelling investment.

However, investors should approach with a long-term mindset. This is not a stock for quick gains but for those who understand the magnitude of the AI revolution and are willing to ride this wave as it reshapes the global economy. The $1,000 price target is not just a number - it's a recognition of NVIDIA's position as a leader in the most transformative technology of our time.

In conclusion, NVIDIA represents a unique opportunity to invest in a company that is not just riding the AI wave but is the architect of it. With its leadership in AI infrastructure, strong financials, and a clear product roadmap, the company is well-positioned to deliver substantial returns to investors who are willing to think long-term. For those who understand the magnitude of the AI revolution and are willing to invest in the companies driving it, NVIDIA is a stock worth considering - especially if you're looking to buy before it potentially reaches the $1,000 milestone.