Listening to what industry leaders say about the future of artificial intelligence (AI) is the key to being a successful investor. One of the AI leaders is Nvidia‘S (NASDAQ: NVDA) CEO and founder Jensen Huang. Because Nvidia makes the hardware that powers these AI models, Huang has a good sense of the pulse of the industry and has identified a key trend: agentic AI.
This is the next step in integrating AI and using it for practical purposes. But what are AI agents and how can investors benefit from them? Investing in Nvidia is a great place to start.
Huang spoke about AI agents at the recent CES trade show in Las Vegas. During a question and answer session, he said: “I think we’re going to see it take off this year.”
AI agents can be deployed to do everyday work that humans often do. Examples include data entry, interacting with customers, or maintaining inventory counts. In short, AI goes beyond a simple chat interaction. AI agents will be able to perform multi-step tasks that require reasoning rather than just strict knowledge.
Nvidia offers tools for building AI agents, which it calls blueprints. When customers build these agents on the Nvidia platform, they essentially remain long-term customers of Nvidia, which is critical to driving continued sales. Nvidia’s platform has long been the standard in the AI world, and the launch of an agentic AI platform only solidifies its position.
After the dominant run that Nvidia’s stock has had in recent years, investors would be forgiven for thinking that the rise in Nvidia’s stock was limited. However, there’s still massive growth ahead for Nvidia, and investors can still make solid profits by investing in the stock today.
For fiscal year 2026 (which ends in January 2026 and covers most of 2025), Wall Street analysts expect Nvidia’s revenue to rise 52% year over year. That’s incredible, considering Nvidia is expected to grow revenue from $129 billion to nearly $200 billion. With that level of massive growth in mind, Nvidia remains one of the best ways to invest in AI because it doesn’t require you to pick a winner. Many AI software companies will build their models on Nvidia’s hardware infrastructure.
Many companies will build AI agents on the Nvidia platform. Some will create them for internal use, while others will build them to sell to their customers. This neutrality makes Nvidia a promising investment, even if it has had an incredible run in recent years.
From a valuation perspective, Nvidia isn’t as pricey as it once was. Nvidia’s business growth is catching up with the stock’s valuation.
With earnings down 55 times, Nvidia shares aren’t that expensive compared to expected growth in the coming months. Considering that big tech colleague Amazon is trading at a rolling price-to-earnings (P/E) ratio of 48, Apple at a price-earnings ratio of 40, and Microsoft With a price-to-earnings ratio of 35, Nvidia shares don’t seem that expensive.
Nvidia will continue to see strong growth in 2025, thanks in part to AI agents. This will be a huge trend, and Nvidia is one of the best ways to invest in it. Investors should continue to look to the future with Nvidia, because anchoring on a past price won’t do you any good. Nvidia is still a strong stock pick and its AI-based growth story is far from over. Investors can still make a lot of money from it.
Consider the following before buying shares in Nvidia:
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Amazon and Nvidia. The Motley Fool holds positions in and recommends Amazon, Apple, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
Will 2025 be the year of artificial intelligence (AI) agents? Nvidia CEO Jensen Huang thinks so. was originally published by The Motley Fool
