Paying attention to insights from industry leaders about the future of artificial intelligence (AI) is crucial for successful investing. One such leader is Nvidia’s (NVDA -3. 00%) CEO and founder, Jensen Huang. Nvidia, a key player in creating the hardware for AI models, enables Huang to have a deep understanding of industry trends, particularly the rise of agentic AI. Agentic AI represents the next phase of integrating AI for practical applications. But what exactly are AI agents, and how can investors take advantage of this trend?A good starting point is investing in Nvidia. AI agents are expected to enter mainstream use by 2025 At the recent CES trade show in Las Vegas, Huang discussed the rise of AI agents. He mentioned in a Q&A session, "I think this year we're going to see it take off. " AI agents can handle routine tasks typically performed by humans, such as data entry, customer interactions, or inventory management. Essentially, AI is advancing beyond simple chat features to perform complex, reasoning-based tasks. Nvidia offers tools for developing AI agents, termed as blueprints. When clients build agents on Nvidia’s platform, they become long-term customers, driving ongoing sales.

Nvidia’s platform has been a standard in the AI industry, and its agentic AI platform launch reinforces its leading position. Despite Nvidia's stock's impressive performance over the past few years, there is still significant growth potential, and investors can benefit by investing in the stock now. The stock continues to have growth potential For the fiscal year 2026 (ending January 2026), Wall Street analysts anticipate a 52% revenue increase for Nvidia year over year. This is remarkable, considering the expected revenue growth from $129 billion to nearly $200 billion. Given this substantial growth, Nvidia remains a top choice for investing in AI, allowing investors to benefit from industry advancements without choosing a single winner. Many AI software companies will use Nvidia’s hardware infrastructure for their models. Numerous companies will build AI agents on Nvidia’s platform for both internal uses and to offer to their clients. This versatility makes Nvidia a compelling investment despite its recent strong performance. From a valuation standpoint, Nvidia is not as expensive as it once was. The company's business growth is beginning to align with its stock valuation. With a trailing price-to-earnings (P/E) ratio of 55, Nvidia's stock is relatively reasonably priced compared to its anticipated growth. Compared to big tech peers like Amazon at a P/E of 48, Apple at 40, and Microsoft at 35, Nvidia’s stock appears more attractively valued.