One Undervalued Technology Stock Canadian Investors Should Buy

In this article, we will discuss the One Undervalued Technology Stock Canadian Investors Should Buy

Technology continues to transform industries across the globe, reshaping everything from logistics and communication to design and manufacturing. Over the decades, investors have witnessed distinct waves of innovation — the personal computer (PC) boom, the rise of mobile, the transition to cloud computing, and most recently, the explosion of artificial intelligence (AI). At the core of each wave were select tech giants that delivered outsized returns to early investors.

One standout stock has produced millionaires across multiple innovation cycles: Nvidia (NASDAQ: NVDA). The company, best known for its cutting-edge graphics processing units (GPUs), has played a pivotal role in both the PC gaming era and today’s generative AI boom.

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From PC Gaming to Generative AI

Nvidia began capturing serious investor attention during the PC gaming surge of 2016. Its GeForce GPUs became the go-to hardware for gamers, tech enthusiasts, and cryptocurrency miners. Between October 2016 and November 2017, Nvidia’s stock soared by 200%.

Following that surge, the company experienced a slower growth phase, partly due to geopolitical tensions from the U.S.–China trade war in 2018. Many investors believed the stock had become overvalued. But those who bought during the dip and held on through the cycle were handsomely rewarded.

The pandemic era brought Nvidia’s next wave of growth. A global pivot to remote work and digital infrastructure drove demand for high-performance computing. Data center expansion, a PC upgrade cycle, and a booming crypto market pushed Nvidia’s stock up by an astonishing 716% between January 2019 and November 2021.

Then came November 2022, when generative AI entered the mainstream. Demand for AI computing power skyrocketed — and Nvidia was at the heart of it. The stock climbed another 800% between November 2022 and November 2024, as companies scrambled to build and expand AI infrastructure powered by Nvidia GPUs.

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Nvidia’s Explosive Financial Growth

Between January 2019 and January 2025, Nvidia posted staggering financial results. Revenue grew at a compound annual growth rate (CAGR) of 49%, while net income increased at an even more impressive 61% CAGR. The result? A nearly unparalleled run-up in shareholder value.

To put this into perspective:
An investor who put $10,000 into Nvidia in October 2016, and added another $10,000 in January 2019, would now be sitting on a portfolio worth approximately $1.34 million. After stock splits, this hypothetical investment would have yielded 8,676 shares, which, at Nvidia’s current price of $155.09, totals more than $1.34 million.

Today, Nvidia is valued at over $3.7 trillion, making it one of the world’s most valuable companies. However, the stock did experience a short-term decline due to trade and tariff uncertainty ahead of the U.S. elections, falling 34% before bouncing back by 64% from its April 4, 2025 low.

Why Nvidia Could Keep Creating Millionaires

Nvidia’s business model is highly scalable. Rather than manufacturing its chips, the company licenses its GPU designs and earns a share of the revenue from each unit sold. Production and distribution are handled by third-party partners. This asset-light strategy has allowed Nvidia to focus on innovation while keeping costs low, enabling profit growth to consistently outpace revenue gains.

Currently, Nvidia trades at 36 times its projected fiscal 2026 earnings per share — a lofty valuation, but one that analysts argue is justified by the company’s strong 60% net income growth.

Looking ahead, Nvidia is well-positioned for future waves of AI adoption. While generative AI is fueling today’s growth, edge AI applications — including robotics, autonomous vehicles, and smart cities — could unlock new, large-scale markets. Unlike data center AI, which emphasizes high-margin computing, edge AI will focus on high-volume deployment — a scenario where Nvidia’s dominance could lead to another 700–800% stock surge over the next decade.

The Bottom Line

Nvidia has already turned disciplined investors into millionaires by riding multiple waves of tech transformation. And with AI still in its early innings, this powerhouse may be just getting started.