Nvidia (NASDAQ:NVDA) stock has been moving sideways lately, even after delivering what most would consider another blowout performance earlier this quarter. The market response has been surprisingly muted despite record revenue and continued margin expansion in its fiscal Q3 2026 report.
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The company’s stellar reputation has certainly driven expectations to astounding heights, making positive surprises increasingly difficult to achieve. Another contributing factor has been concerns regarding the inflated valuations of AI stocks, as some investors worry that the massive spending among the hyperscalers is a bubble-in-the-making.
One investor, known by the pseudonym Alpha Analyst, isn’t deterred by the lukewarm sentiment at present and believes that the cold, hard figures tell a compelling story.
“Going by the numbers and expecting the AI tailwind to keep growing at the expected CAGR of ~32% over the next 5 years, I find Nvidia almost a value Buy at these levels,” the investor opined.
It’s not just that global data center spending is expected to increase so handily, notes The Alpha Analyst, but Nvidia’s path toward some $100 billion in revenue growth by FY 2027 looks “very achievable.”
The investor cites upcoming revenues from Blackwell and Rubin, which are expected to be half a trillion dollars by the end of 2026. Though competition is rising, that shouldn’t be too much of an issue in the foreseeable future.
Even in a “radically conservative growth path,” one in which the competition takes a big slice out of Nvidia’s sales and the P/E multiple falls precipitously to roughly 25x (down from the mid-40s where it currently resides), the investor still calculates that NVDA’s share price will grow at a rate of 11.2% CAGR over the coming five years.
Of course, things could also easily surpass this so-called dreary reality, leaving plenty of reasons for investors to jump on board NVDA.
“Better-than-expected realistic outcome(s), like slower competitive progress, continued moat enhancements at Nvidia, or even a geopolitical thaw, could only propel the stock further up,” concludes The Alpha Analyst, who gives NVDA shares a Buy rating. (To watch Alpha Analyst’s track record, click here)
Wall Street is clearly along for the ride as well. With 39 Buys – and just one Hold and one Sell – NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $258.10 implies an upside north of 40%. (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.