Nvidia (NASDAQ:NVDA) stock is roaring back, nearly shaking off the late-January DeepSeek crash with a 16% surge this month. For now, the market appears reassured that the Chinese company’s alternative LLM poses no immediate threat to NVDA’s business model.
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In fact, one top investor, known by the pseudonym KM Capital, believes that Nvidia’s dominance is not only intact but also poised to strengthen further.
“Nvidia remains the undisputed king in the soaring AI processors industry, and several recent developments suggest that competitors still do not pose threat to Nvidia’s dominance,” says KM, who sits in the top 3% of TipRank’s stock pros.
For one, KM views OpenAI CEO Sam Altman’s recent remarks as further evidence that AI infrastructure spending is only gaining momentum. Altman recently emphasized that additional computing power is “more important now than ever before.”
Moreover, KM points to major AI investments worldwide, including the massive $500 billion Stargate project in the U.S., a €50 billion UAE-backed AI expansion in France, and a surge of new data center projects across Europe.
“With all these developments, I expect AI tailwinds to continue fortifying,” explains the investor, adding that Nvidia is ideally placed to capitalize on these trends.
KM is also buoyed by Nvidia’s constant focus on R&D spending, which is head and shoulders above that of its closest rival AMD. The investor notes that Nvidia’s net cash position is 10x larger than AMD’s, ensuring it maintains its lead in cutting-edge innovation.
And Nvidia isn’t just looking inward. KM sees the company aggressively expanding into new markets, including the $10 trillion global healthcare industry, where it already partners with major players like IQVIA, Illumina, and the Mayo Clinic.
With its relentless innovation, deep financial moat, and an insatiable demand for AI infrastructure, “Nvidia remains a no-brainer ‘Strong Buy’,” the investor summed up. (To watch KM Capital’s track record, click here)
Wall Street is equally enamored with Nvidia, and its 37 Buy and 3 Hold recommendations give the company a Strong Buy consensus rating. Its 12-month average price target of $178.86 would yield gains of ~32% in the year ahead. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
