NVIDIA Corporation (NVDA): A Bull Case Theory

We came across a bullish thesis on NVIDIA Corporation on VantagePointAI’s Substack. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation’s share was trading at $173.00 as of July 17^th. NVDA’s trailing and forward P/E were 55.81 and 38.76 respectively according to Yahoo Finance.

NVIDIA ($NVDA), now the world’s most valuable company at a $4.1 trillion market cap, has evolved from a niche graphics card maker into the cornerstone of the AI economy. Its dominance stems from years of R&D, a commanding lead in GPU computing, and the CUDA ecosystem, which locks in developers and cements NVIDIA’s status as a platform company.

The data center business, fueled by AI chips like the H100, has become its largest revenue engine, growing more than 400% year-over-year and driving a 1,582% explosion in earnings over four years, while gaming, professional visualization, and automotive segments continue to scale. Performance has trounced the S&P 500, with NVDA up over 250% in the past year, approaching 52-week highs and drawing persistent institutional inflows.

Yet risks remain: U.S.-China tensions, export restrictions, supply reliance on TSMC, and the cyclical nature of semiconductors pose structural headwinds. NVIDIA’s recent earnings highlighted $4.5 billion in write-downs and $2.5 billion in lost China sales, offset by aggressive pivots to other global markets and surging demand for Blackwell chips. Analyst targets span $100 to $250, implying wide volatility, while the stock’s 50% historical range and 1.5+ beta underscore its high-octane nature.

For traders, NVDA is more than a stock — it’s a market barometer for AI innovation. Tactical positioning around guidance, margin trends, and geopolitical developments is essential, as NVIDIA’s execution, ecosystem depth, and entrenched leadership offer both outsized opportunity and elevated risk in an industry-defining megatrend.

Previously we covered a bullish thesis on NVIDIA Corporation (NVDA) by Compounding Your Wealth in April 2025, which highlighted NVIDIA’s dominance in AI accelerators, CUDA-driven ecosystem lock-in, and expanding data center TAM. The company’s stock price has appreciated approximately by 55.9% since our coverage as AI-fueled earnings growth outpaced margin concerns. VantagePointAI shares a similar view but emphasizes near-term trading setups, volatility, and geopolitical risks.

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Disclosure: None.