Is NVIDIA Corporation (NVDA) A Good Stock To Buy Now?

2 weeks ago 15

Ricardo Pillai

Sun, May 3, 2026 astatine 1:13 PM CDT 3 min read

Is NVDA a bully banal to buy? We came crossed a bullish thesis on NVIDIA Corporation connected Long-term Investing’s Substack by Sanjiv. In this article, we volition summarize the bulls’ thesis connected NVDA. NVIDIA Corporation's stock was trading astatine $199.64 arsenic of April 23^rd. NVDA’s trailing and guardant P/E were 40.74 and 24.51 respectively according to Yahoo Finance.

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NVIDIA Corporation operates arsenic a information halfway standard AI infrastructure company. NVDA is presented arsenic a high-conviction AI person whose concern lawsuit has been reinforced since archetypal sum successful May 2023, arsenic it evolved into the world’s largest institution with a $4.7trn marketplace capitalization. The latest Q4 results amusement grounds gross of $68.1bn, up 73% y/y, with information halfway gross of $62.3bn driving 91% of full income and operating nett rising 84%, alongside nett net maturation of 91%.

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Operating currency travel exceeded $100bn annually for the archetypal clip and escaped currency travel reached $96bn, reflecting beardown borderline enlargement and capital-light scaling. Guidance for $78bn adjacent 4th implies 77% growth, supported by request excluding China constraints. Bear concerns see hyperscaler concentration, imaginable ASIC substitution successful inference workloads and fears of a cyclical highest successful AI capex. However, the bullish lawsuit argues that generative AI and agentic bundle volition necessitate exponentially much compute per task turning compute into a gross motor alternatively than a outgo center.

Nvidia besides strengthens its moat done CUDA NVLink and networking which present exceeds $31bn annually making afloat stack AI infrastructure progressively sticky and hard to displace. Valuation astatine 17.2x guardant net appears tenable fixed 100% ROE and semipermanent CAGR imaginable of 11-18%.

Overall the outlook remains bullish arsenic Nvidia is positioned astatine the halfway of a structural AI infrastructure enlargement rhythm with sustained hyperscaler spending, accelerating endeavor adoption, and expanding AI workloads expected to enactment durable gross compounding implicit the mean word and continued borderline enlargement visibility up likely.

Previously, we covered a bullish thesis connected NVIDIA Corporation (NVDA) by Compounding Your Wealth successful April 2025, which highlighted Data Center dominance, CUDA moat, and slowing but resilient maturation with improving valuation. NVDA's banal terms has appreciated by astir 79.96% since our coverage. Sanjiv shares a akin presumption but emphasizes generative AI, agentic bundle demand, and full-stack infrastructure spot via networking and NVLink driving sustained structural capex expansion.

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