We just covered Here is How Billionaire Philippe Laffont’s Top 10 Picks Crushed The Market. NVIDIA Corporation (NASDAQ:NVDA) ranks #9 (see the Here is How Billionaire Philippe Laffont’s Top 5 Picks Crushed The Market).
YTD Stock Performance: +12%
Philippe Laffont’s Stake: $1.71 Billion
NVIDIA’s stock has been a target of skeptics ever since the AI hype debate started taking over Wall Street. Despite concerns around AI spending and valuation, the company has repeatedly beaten analyst estimates and raised guidance. What bears may have underestimated is that Nvidia is no longer just a GPU company. The AI buildout is creating an ecosystem where Nvidia sits at the center.
Beyond its Blackwell GPUs and upcoming Vera chips, the company has growth catalysts like CPUs (Grace) and deeper infrastructure with NVLink and InfiniBand networking. Networking has become one of its fastest-growing segments, with revenue more than doubling year over year, driven by strong demand for systems like Spectrum-X that connect large AI data centers.
Nvidia is also moving into full rack-scale systems such as GB200 NVL72, which combine compute, networking, and memory into complete data center units. This shifts Nvidia closer to a full infrastructure provider rather than just a chip designer. Gross margins have stayed strong at around 75%, supported by higher-margin networking and software. The stock has a forward PE ratio of 24x, which is decent given Nvidia’s growth, ecosystem expansion, and strong competitive moat.
Nvidia is slated to release its latest quarterly results later this month.
Nightview Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2026 investor letter:
“The AI efficiency selloff in NVIDIA Corporation (NASDAQ:NVDA) earlier this year gave us an opportunity to add to our position. Our view: the demand for AI compute is not declining; the efficiency of that compute is improving. These are not contradictory trends. Jevons’ Paradox is real and relevant here — as the cost per unit of AI output falls, the total demand for AI output rises. More compute gets consumed, not less. NVIDIA’s H100 and Blackwell architectures remain the…” (Click Here to Read the Letter in Detail).”
Photo by Javier Esteban on Unsplash
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.
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