Nvidia Corporation (NASDAQ:NVDA) has hit its stride once more, riding surging revenues and strong profit margins into rising share prices. The slump in the beginning of the year now seems like a distant memory, and NVDA’s share price has increased by over 60% during the past three months.
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The company’s First Quarter Fiscal 2026 numbers confirmed things are going swimmingly, with revenues of $44.1 billion up 69% year-over-year. That’s not to say it was all sunshine and rainbows, however, as the company was forced to absorb a $4.5 billion charge following the Trump administration’s restriction on H20 exports to China.
However, this too seems to be in the company’s rearview mirror, as last week Nvidia was given assurances that it will be able to sell these AI chips to China once more.
That’s another big catalyst on the horizon, according to the top investor known by the pseudonym Stone Fox Capital – who sees plenty of upside for Nvidia in the months ahead.
“Nvidia Corporation can now sell older AI GPU chips to China, reversing a previous sales block and unlocking a $50 billion annual market opportunity,” explains the 5-star investor, who is among the top 3% of TipRanks’ stock pros.
Stone Fox believes that the company is gearing up for a “monster quarter,” especially now that the Chinese market is back in play. With Q2 sales wrapping up shortly, the big H20 wins will likely be felt in the upcoming quarters.
“Nvidia’s FQ3 and FQ4 revenue guidance could see significant upside as Chinese sales resume, potentially pushing quarterly sales far above current consensus estimates,” adds Stone Fox.
Of course, it is not just sales figures that matter for investors, but the valuation that counts as well. Despite the recent rally, Stone Fox argues that NVDA is attractively valued at 30x Forward 2027 EPS. The access to China and its total addressable market of $50 billion certainly sweetens the deal.
In other words, the positive trajectory for NVDA should continue, sums up Stone Fox.
“The key investor takeaway is that Nvidia stock remains cheap considering the potential for some monster quarters with the return of China H20 sales,” concludes Stone Fox Capital, who rates NVDA a Strong Buy. (To watch Stone Fox Capital’s track record, click here)
That is certainly the sentiment on Wall Street. With 34 Buys, 3 Holds, and a solitary Sell rating, NVDA is a consensus Strong Buy. Its 12-month average price target of $182.49 has an upside of ~9%. (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.