Nvidia (NASDAQ: NVDA) broke the news that projections are tending toward $1 trillion in data center capital expenditures next year, and other commentary from hyperscalers like Alphabet confirms it. Despite giving a range of $180 billion to $190 billion in capital expenditures this year, Alphabet told investors that next year’s totals will be “significantly higher.” That’s huge news for investors, especially those who are heavily invested in artificial intelligence (AI) infrastructure businesses like I am.

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I think the biggest beneficiary of all this spending is right under investors’ noses, and the company is set to capitalize on it next year.

The largest company in the world will get larger in 2027

While there are many ways to invest in the data center build-out, Nvidia is still the best way, in my opinion. Its dominance in the industry can’t be overstated, and while custom AI chips are emerging, Nvidia’s GPUs still handle the lion’s share of AI workloads.

Furthermore, as the construction of data centers wraps up, it’s time to fill them with computing units. This will change the mix of spending to be more computing-focused, boosting Nvidia’s share of the pool of money being spent on data centers.

Another catalyst Nvidia has in 2027 is the launch of its new GPU architecture, Rubin. Rubin GPUs will be game-changing, as they can train at a fourth of the cost of previous-generation Blackwell chips and run inference at a tenth of the cost. That will drive some companies to upgrade older generations to newer ones, and many of the new data centers going up are likely to incorporate Rubin technology.

These are major catalysts that will drive monster growth for Nvidia next year, but none of that is priced into the stock.

At 23 times forward earnings, Nvidia is barely more expensive than the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC). The S&P 500 trades for about 22 times forward earnings, and considering Nvidia’s monstrous growth, that’s a premium worth paying. Furthermore, this indicates that only one year of Nvidia’s growth is priced into the stock, so 2027’s results should directly translate to stock price appreciation.