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Nvidia’s (NVDA) Bullish Thesis Intact as AI Demand Stays Strong, Reaffirms TD Cowen

Nvidia Corporation (NASDAQ:NVDA) is one of the best stocks for a 20-year long-term stock portfolio. Nvidia’s results appeared like the event of the year, with many investors and analysts pinning hopes on a strong result and outlook, which would have meant that the AI-led investment story is fully intact.

Following the company’s better-than-expected Q2 results, on August 27, TD Cowen analyst Joshua Buchalter reaffirmed his Buy rating on Nvidia Corporation (NASDAQ:NVDA) with a $235 price target. While the beat was smaller than recent quarters, Buchalter expressed confidence given sustained AI demand and Nvidia’s transition from Blackwell to Blackwell Ultra GPUs. He also noted gross margins are trending toward 75%, and the company is making continued progress on the Rubin GPU roadmap.

Photo by BoliviaInteligente on Unsplash

In addition, Buchalter highlighted that Nvidia Corporation’s (NASDAQ:NVDA) Gaming and Networking drove the upside. Networking strength was noticeable as it experienced a 46% sequential growth, driven by stronger rack-scale sales. ‘Compute’ revenue declined due to the absence of $4 billion in China exports, though adjusted growth remained healthy.

However, Nvidia Corporation (NASDAQ:NVDA) guidance was weaker than expected. That said, the analyst excluded potential China sales from forecasts due to regulatory uncertainty, arguing that visibility remains limited. Despite near-term volatility, Buchalter continues to see Nvidia as his top pick, supported by structural demand for AI.

Nvidia Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software.

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Stocks to Buy and Hold Forever and 12 Overlooked Large-Cap Stocks with Low Multiples.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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