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Most Investors Overpay for AI Hype. Nvidia Is the Exception.

Although Nvidia's AI profits are already huge, its next growth phase comes with much bigger bets and higher risks.

Most Investors Overpay for AI Hype. Nvidia Is the Exception.

Published September 5, 2026 · Category: Finance

Overview

I get cautious when an artificial intelligence (AI) stock asks investors to pay today for profits that may not show up for years.

Nvidia (NASDAQ: NVDA) has been the dominant player in AI hardware for some time, but its stock still deserves a closer look even after gaining more than 360% over the past three years (as of Sept. 2, 2026). Is Nvidia stock now priced for distant hopes, or is it one of the tech sector's rare exceptions?

Image source: Getty Images.

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Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.