Nvidia (NASDAQ:NVDA) has rarely left investors watching it tread water. Yet, over the past four months, the shares have largely traded in a range-bound pattern – an unusual pause for a company long associated with relentless, market-beating gains.
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Forget margin or options. Here's how the pros trade NVDAWhat makes this lull particularly puzzling is that Nvidia’s underlying business continues to fire on all cylinders. Revenues are still surging ($68.1 billion in the last quarter, up 73% year-over-year), margins remain exceptionally strong (both GAAP and non-GAAP hover around 75%), and guidance keeps climbing, with Q1 FY2027 revenue expected to reach $78.0 billion ±2%.
So, what gives?
AI capital spending by hyperscalers has raised questions about the sustainability of Nvidia’s growth trajectory. Meanwhile, broader geopolitical worries have also pressured stocks across the market in recent weeks.
Another potential landmine arose earlier this week, as reports surfaced that the U.S. Department of Commerce has drafted regulations that would require Nvidia (and others) to obtain government approval before exporting AI chips abroad.
Should investors be concerned? Nope, states one top investor known by the pseudonym Oakoff Investor.
“Despite all the past and fresh fears around NVDA, I believe the stock is poised for continued strength as the management’s plans play out and new offerings hit the market,” states the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
Oakoff offers a couple of reasons for the bullish take.
For starters, the Blackwell ramp is progressing swimmingly, as demonstrated by the company’s strong earnings report late last month. Moreover, it seems crystal clear that customers are “absorbing” Nvidia’s capacity as fast as they can produce it, meaning the gains aren’t close to slowing down.
Second, Oakoff doesn’t think the potential export restrictions are real. The investor cites a social media post from the U.S. Department of Commerce, calling the reports that the government would be returning to the AI diffusion rule erroneous.
Moreover, the rise of agentic systems means that inference, arguably where Nvidia’s strongest competitive advantage lies, is skyrocketing. In other words, demand for the company’s products isn’t going anywhere.
“I don’t see NVDA losing this leading position any time soon,” adds Oakoff.
The investor therefore believes the stock’s recent range-bound trading is largely an aberration and expects the shares to break higher in the period ahead.
“The narrative should change when the market realizes that Nvidia’s bullish cycle isn’t over,” concludes Oakoff, who assigns NVDA a Buy rating. (To watch Oakoff Investment’s track record, click here)
Wall Street is also feeling good. With 38 Buys and 1 Hold, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $273.61 points to a 47% upside from current levels. (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.