Nvidia (NASDAQ:NVDA) keeps putting up numbers that would normally send a stock higher – rapid revenue expansion, industry-leading margins, and a firm grip on the infrastructure behind the AI buildout. Yet, despite that, the shares have struggled to gain traction this year.
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New trading tool for NVDA bearsThe concern is no longer about whether demand is strong, but whether Nvidia has already captured so much of the opportunity that future upside becomes harder to justify. When a company is widely viewed as owning the lion’s share of the AI accelerator market, the question naturally follows – what’s left to win?
It’s a compelling argument on the surface, but one that, according to top investor James Foord, misses how the AI buildout is actually unfolding.
“The market forgot Nvidia: big mistake,” says the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
In his view, Nvidia isn’t just supplying components into the AI buildout – it’s shaping the entire stack. By offering a tightly integrated ecosystem rather than standalone parts, the company is positioning itself as the default platform for customers willing to go “all in.”
“Nvidia still has a commanding lead and will continue to grow in line with the AI market,” adds Foord.
And then there’s the company’s valuation. The investor notes that the market has simply left NVDA behind, citing the fact that both AMD and AVGO, among other AI options, now have more expensive valuations. That creates an opportunity for investors to gobble NVDA at a bargain price.
“Nvidia is now the cheapest it has ever been in this AI cycle, if you ask me, and this sets it up as an outperformer in the coming months,” sums up Foord, who gives NVDA shares a Strong Buy rating. (To watch James Foord’s track record, click here)
Wall Street doesn’t need additional convincing either. With 41 Buys, 1 Hold, and 1 Sell, NVDA storms out to a Strong Buy consensus rating. Its 12-month average price target of $273.57 points to an upside of 50%. (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.