There’s no denying that tech stocks are losing steam, as markets digest the ongoing geopolitical and sectoral trends jolting the system. Nvidia Corporation (NASDAQ:NVDA) is among those impacted, and it has seen its share price plunge by 10% during the past few months.
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Trade NVDA with leverageIndeed, on top of the AI worries that have been bubbling over the last few months, the ongoing fighting in the Middle East has added another layer of unease. In the case of Nvidia, the murky macro setting is colliding with an unquestionably strong performance.
Nvidia continues to surge past both its guidance and expectations, posting another revenue record of $68.1 billion in its last quarter. This is accompanied by top-of-the-line margins of 75%.
Investors could be forgiven for wondering which dynamic will emerge victorious: the rough and tumble global environment or the stellar execution of the largest publicly-traded company around?
Top investor Chris Neiger is one of the bulls, and he argues that there’s plenty of gas “left in the tank” for Nvidia.
“Nvidia’s dominance can’t be overstated,” declares the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Neiger admits that Nvidia is likely the most “obvious” tech stock nowadays, though he pushes forward with multiple reasons why it remains a decidedly solid investment.
The investor argues that no other company approaches Nvidia’s AI dominance, as it can claim 86% of the AI datacenter chip market. This dynamic is reflected in the company’s extraordinary revenues and earnings growth. For the 2026 fiscal year, Nvidia’s data center revenue grew by 68% to reach close to $194 billion.
And the growth pattern isn’t in peril. Neiger cites company CEO Jensen Huang’s recent predictions that the company’s AI processors could hit $1 trillion in revenue by the end of next year.
The pronouncements from the hyperscalers certainly lend credence to this claim, as Microsoft, Amazon, Meta Platforms and Alphabet are projected to spend $650 billion on capex this year.
And yet, Neiger points out that even after its rapid growth over the past few years, Nvidia is trading at a price-to-earnings ratio of 35x. That’s just under the tech sector’s average, he notes.
“That means investors can buy Nvidia stock at a great price right now, even amid AI’s rapid growth,” concludes Neiger. (To watch Chris Neiger’s track record, click here)
That’s the feeling echoing around Wall Street as well. With 41 Buys, 1 Hold, and 1 Sell, NVDA soars to a Strong Buy consensus rating. Its 12-month average price target of $273.34 would translate into gains north of 60%. (See NVDA stock forecast)
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.