Is NVDA a good stock to buy? We came across a bullish thesis on NVIDIA Corporation on r/ValueInvesting by hazxrrd. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation’s share was trading at $205.10 as of June 5th. NVDA’s trailing and forward P/E were 31.41 and 23.42 respectively according to Yahoo Finance.
NVIDIA Corporation operates as a data center scale AI infrastructure company. NVDA is presented as an unconventional value investment opportunity, based on the view that value investing is not limited to buying companies whose stock prices have fallen below intrinsic value, but also includes businesses whose intrinsic value is compounding faster than their share prices.
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The thesis argues that while many investors focus on market overreactions during downturns, value can also emerge when a company’s fundamental earnings power grows at a rate the market struggles to fully appreciate.
NVIDIA exemplifies this scenario, as skepticism surrounding the sustainability of its extraordinary growth has created a disconnect between its current valuation and its future earning potential. Despite becoming one of the world’s largest companies, the market continues to discount the possibility that NVIDIA can maintain its rapid expansion due to the unprecedented scale of its financial performance. The company is expected to generate approximately $78.8 billion in quarterly revenue and roughly $43.5 billion in net income in the first quarter of fiscal 2027, placing it near record profitability levels among U.S. corporations.
Management has also guided toward sequential growth in both revenue and earnings throughout the fiscal year, implying that annual profit could approach or exceed $200 billion, representing more than 70% growth from the approximately $117 billion earned in calendar year 2025. The bullish case rests on the belief that investors are underestimating the probability of NVIDIA achieving these results simply because the magnitude of the growth appears difficult to comprehend.
With demand remaining exceptionally strong and growth constrained more by supply and backlog fulfillment than by customer demand, the thesis argues that concerns about a sharp slowdown are overstated, creating an attractive value opportunity despite the company’s massive size.
Previously, we covered a bullish thesis on NVIDIA Corporation (NVDA) by Compounding Your Wealth in April 2025, which highlighted the company’s AI infrastructure dominance, CUDA-driven competitive moat, expanding addressable markets, and attractive valuation despite moderating growth. NVDA’s stock price has appreciated by approximately 84.89% since our coverage. hazxrrd shares a similar view but emphasizes on NVIDIA’s undervaluation relative to its rapidly compounding earnings power and future profit potential.
NVIDIA Corporation is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 275 hedge fund portfolios held NVDA at the end of the first quarter which was 264 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.
