The smiles are back, and the market seems happy, as the ceasefire in the Middle East continues to hold. That’s been good news for many companies, and Nvidia (NASDAQ:NVDA) is clearly among the beneficiaries. The stock has put together a nice run and is now 21% above its March 30 low.
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New trading tool for NVDA bearsJust a few weeks ago, the tone looked very different. NVDA had been drifting lower and was still in negative territory for the year, despite delivering a blockbuster late-February earnings report. The company posted $68 billion in revenue, up 73% year-over-year, alongside a stellar 75% GAAP gross margin, and guided for continued strength with current-quarter revenue expected at $78 billion ±2%.
The shifting sentiment has convinced one top investor, known by the pseudonym Deep Value Investing, that the time has come to jump back in.
“I believe the market is back in risk-on mode. The tide is likely to lift all boats, and Nvidia still remains the most obvious trade on AI,” states the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
That’s not to say that Deep Value doesn’t recognize the company’s stellar performance, noting that Nvidia has been “consistently obliterating expectations.” The investor dismisses bearish concerns over a slowdown in tech spending, as the big four hyperscalers are forecast to spend some $635 billion this year (a 66% year-over-year increase).
“I think the demand backdrop remains solid this year,” adds Deep Value.
However, Deep Value is dialing back the enthusiasm just a bit. For instance, the investor worries that the company won’t be bursting through an open door in the Chinese market (even if sales resume), as competition with Chinese chipmakers will be tough.
Another concern for Deep Value is the threat posed by custom silicon chips, with Google and its Ironwood TPUs leading this charge. But that’s a problem for another day. For now, Deep Value predicts good news throughout 2026.
“I have no doubt the company will keep beating and raising this year,” sums up Deep Value, who is assigning NVDA shares a Buy rating. (To watch Deep Value Investing’s track record, click here)
Wall Street is also leaning firmly in the bullish camp, and the conviction is hard to ignore. NVDA racks up 41 Buy ratings against just 1 Hold and 1 Sell, earning a Strong Buy consensus rating. With a 12-month average price target of $273.57, analysts see the stock climbing nearly 40% from here. (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.