Nvidia (NASDAQ:NVDA) has become the world’s second-largest company by market cap thanks to its explosive AI-driven growth. But lately, the ride’s gotten a bit bumpier.
Various concerns – including how the company will sustain its rapid growth, mounting risks tied to its China business, Trump’s proposed tariffs, and the entrance of DeepSeek into the AI game – have all helped sour sentiment. The impact? NVDA shares have tumbled 18% year-to-date.
So, investors need to ask themselves whether this marks the beginning of a bigger downturn or whether the recent price action represents an opportunity to grab shares at a discount.
That’s exactly what top investor Rick Orford is wondering: “After its recent pullback, I had to dig deeper. Is this just a pause… or the perfect setup for another explosive move?”
His verdict leans bullish. Orford, who’s among the top 2% of TipRanks’ stock pros, points to Nvidia’s recent outstanding results, which include both impressive top-line and bottom-line growth. And in his view, that’s just the beginning.
“Knowing that AI adoption is still in its early stages, the company’s upward trajectory will likely continue for years,” the investor further said.
While it’s true that past performance does not guarantee the company will continue to outperform, Orford thinks several potential catalysts are lining up to position Nvidia to keep on doing just that.
For one, Nvidia recently unveiled its latest chip, Blackwell Ultra, a move that Orford thinks will further solidify its leading position in the growing AI industry. Nvidia describes the chip as the most advanced AI computing platform ever created, boasting 70 times the AI performance of its previous Hopper GPU Architecture.
The “next potential revenue driver” is its newly launched open-source library, Dynamo, which aims to optimize the scalability of AI reasoning models across extensive GPU clusters.
Unlike traditional inference servers, Dynamo takes a smarter approach by managing GPU resources and directing inference requests before data is transferred – helping to reduce operational costs. Its key innovation is disaggregated serving, which separates the compute phases of processing and generation, allowing each to be fine-tuned independently. That efficiency could be a game-changer in data centers, where performance and cost savings are everything. If widely adopted, Orford believes Dynamo could significantly boost demand for Nvidia’s AI GPUs and solidify its position in AI infrastructures.
Bottom line, the investor thinks the recent depressed price action could turn out to be a “rare opportunity hiding in plain sight.” “You don’t want to be on the sidelines when this stock makes its next move,” Orford summed up, rating NVDA shares a Strong Buy. (To watch Orford’s track record, click here)
He’s far from alone. The analyst consensus paints a similarly bullish picture, with 39 Buys vs. just 3 Holds, earning NVDA stock a Strong Buy consensus rating. The average price target of $176.54 points to a potential upside of ~61% for 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.