Is NVDA a good stock to buy? We came across a bullish thesis on NVIDIA Corporation on Long-term Investing’s Substack by Sanjiv. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation’s share was trading at $199.64 as of April 23rd. NVDA’s trailing and forward P/E were 40.74 and 24.51 respectively according to Yahoo Finance.
Photo from Oracle website
NVIDIA Corporation operates as a data center scale AI infrastructure company. NVDA is presented as a high-conviction AI leader whose investment case has been reinforced since initial coverage in May 2023, as it evolved into the world’s largest company with a $4.7trn market capitalization. The latest Q4 results show record revenue of $68.1bn, up 73% y/y, with data center revenue of $62.3bn driving 91% of total sales and operating profit rising 84%, alongside net profit growth of 91%.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Operating cash flow exceeded $100bn annually for the first time and free cash flow reached $96bn, reflecting strong margin expansion and capital-light scaling. Guidance for $78bn next quarter implies 77% growth, supported by demand excluding China constraints. Bear concerns include hyperscaler concentration, potential ASIC substitution in inference workloads and fears of a cyclical peak in AI capex. However, the bullish case argues that generative AI and agentic software will require exponentially more compute per task turning compute into a revenue engine rather than a cost center.
Nvidia also strengthens its moat through CUDA NVLink and networking which now exceeds $31bn annually making full stack AI infrastructure increasingly sticky and difficult to displace. Valuation at 17.2x forward earnings appears reasonable given 100% ROE and long-term CAGR potential of 11-18%.
Overall the outlook remains bullish as Nvidia is positioned at the center of a structural AI infrastructure expansion cycle with sustained hyperscaler spending, accelerating enterprise adoption, and expanding AI workloads expected to support durable revenue compounding over the medium term and continued margin expansion visibility ahead likely.
Previously, we covered a bullish thesis on NVIDIA Corporation (NVDA) by Compounding Your Wealth in April 2025, which highlighted Data Center dominance, CUDA moat, and slowing but resilient growth with improving valuation. NVDA’s stock price has appreciated by approximately 79.96% since our coverage. Sanjiv shares a similar view but emphasizes generative AI, agentic software demand, and full-stack infrastructure strength via networking and NVLink driving sustained structural capex expansion.
NVIDIA Corporation is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 264 hedge fund portfolios held NVDA at the end of the fourth quarter which was 234 in the previous quarter. While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
