Not Micron. Not Alphabet. Here's My Top Artificial Intelligence (AI) Stock Pick for the Next 3 Years.

There are some incredible artificial intelligence (AI) stocks to invest in right now. Micron (MU +2.77%) is booming from a memory chip shortage and looks primed to continue rising. Alphabet (GOOG +1.88%) (GOOGL +1.55%) is experiencing success on several fronts in the AI arms race, and looks poised to deliver strong returns as well. However, neither of these stocks has anything on Nvidia (NVDA +2.30%).

Nvidia is at the heart of the AI build-out, and looks like a stock primed to continue rising over the next few years. I think that makes it a top stock to buy in today’s market, and investors should consider loading up on shares now to benefit from its absurdly low valuation.

Nvidia expects huge growth in the future

For as long as the AI arms race has been going on, the question surrounding Nvidia has been: Can it keep up its growth rate? While the resounding answer from most investors has been “No,” Nvidia continues to defy expectations and even provides guidance to back it up.

For next year, Nvidia expects to grow its revenue at a 70% pace. Given how large a company Nvidia is, that’s an incredible projection. There has never been a company as large as Nvidia, let alone half the size, that has grown this rapidly. The market really doesn’t know what to do with the stock, as all of the numbers indicate that Nvidia will be a far larger company than any other U.S. business. However, I know what to do: Buy the stock.

Nvidia is at the heart of the AI arms race and will remain there due to its early lead. Nvidia’s GPUs are best in the business, and with a new architecture launching, they will unlock features and capabilities previously unthinkable. While there is some rising competition for custom AI chips, there will always be a place for Nvidia GPUs due to their flexibility and universal nature. This positions Nvidia well to thrive in the coming years and could allow the stock to reach new heights.

But just how far can it go?

Nvidia’s valuation is cheap for its potential

Right now, Nvidia’s stock trades at a very attractive 28 times earnings.

NVDA PE Ratio data by YCharts

That’s a pretty typical valuation for a big tech stock, but there’s only one problem: Nvidia is no ordinary big tech stock. No other big tech stock is growing as quickly as Nvidia. Its peers, Advanced Micro Devices and Broadcom, trade at 144x and 46x earnings, respectively.

That’s a major mismatch, and there’s really no reason for Nvidia to trade as cheaply as it is, especially considering its guidance for the next fiscal year.

With Nvidia trading at a non-inflated price now, the 70% growth it projects next year could easily translate into stock performance gains. It’s rare that the market hands you an investment that can rise 70% in a year with little chance of failing, but that’s what the market is giving you in Nvidia. While there aren’t any projections beyond next year, Nvidia has told investors it expects global data center capital expenditures to rise to between $3 trillion and $4 trillion by 2030. That means there’s even more upside ahead for Nvidia, and with it having a pretty low starting point, that makes Nvidia the top AI stock pick right now.

Even if you already have a healthy portion of your portfolio allocated to Nvidia stock, this is an incredible setup, and I think any investor should consider buying it right now.