Nvidia (NASDAQ:NVDA) stock has seen no shortage of (mostly positive) news over the past few months, prompting some to wonder if it’s time to follow the old market adage: “Buy the rumor, sell the news.”
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That temptation is understandable. The lifting of export restrictions to China, billions in confirmed hyperscaler capex spending, and sovereign deals across the Middle East and Europe have all powered a 94% surge from April’s lows.
With such a strong rally already in the books, attention now turns to whether the upcoming Q2 FY 2026 earnings report, set for August 27, will justify the optimism – or reveal that expectations have run too far ahead.
Investor Bohdan Kucheriavyi thinks the latter concern is misplaced. Selling now, he argues, would be a big mistake.
“Even after the latest rally, Nvidia’s stock remains undervalued,” the 5-star investor says, pointing to catalysts that, in his view, still have plenty of runway.
For starters, the return of Chinese sales should add meaningful tailwinds – and Kucheriavyi believes some of those gains may already be reflected in the quarter that just ended. The investor also notes that key ecosystem partners like ASML, TSMC, and SK Hynix have all posted robust results recently, reinforcing expectations for Nvidia’s own strong performance.
But his bullish stance isn’t just about Q2. Looking further out, Kucheriavyi sees rising EBIT margins as Blackwell-driven profits start rolling in, creating another layer of growth beyond the China boost.
According to his modeling, Nvidia could be pulling in roughly $200 billion in revenue by FY26. For this year alone, Kucheriavyi projects about $15 billion in additional sales – the exact amount analysts once assumed Nvidia would lose when the H20 ban first hit. With those restrictions now lifted, the investor sees a path to stronger-than-expected results, sustained double-digit revenue growth, and potentially even greater upside if the U.S. eventually allows sales of Nvidia’s most advanced AI chips to China.
Put together, Kucheriavyi believes these factors give NVDA’s share price room to keep climbing. While nothing is certain, Kucheriavyi is putting his money where his mouth is.
“I recently bought more of Nvidia’s shares, as I continue to consider them a solid investment,” emphasizes Kucheriavyi, who rates NVDA a Buy. (To watch Bohdan Kucheriavyi’s track record, click here)
Wall Street largely agrees. NVDA enjoys a Strong Buy consensus rating, backed by 34 Buy recommendations against just 3 Holds and a single Sell. The 12-month average price target sits at $186.24 – only modestly above current levels, but history suggests the market may still be underestimating what comes next. (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.