We came across a bullish thesis on NVIDIA Corporation (NVDA) on Substack by Long-Term Pick. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation (NVDA)’s share was trading at $124.81 as of Feb 28th. NVDA’s trailing and forward P/E were 42.49 and 28.25 respectively according to Yahoo Finance.
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NVIDIA continues to solidify its position as the global leader in AI computing, with its latest earnings report highlighting unprecedented growth. The company posted record Q4 2025 revenue of $39.3 billion, representing a 12% sequential increase and a 78% year-over-year surge. Its data center segment, the primary growth driver, generated $35.6 billion in revenue, up 93% from the prior year, fueled by accelerating demand for AI computing infrastructure. For the full year, NVIDIA achieved a historic $130.5 billion in revenue, marking a 114% increase. Despite these strong results, the company’s stock remains approximately 30% below its fair value estimate of $187, suggesting considerable upside potential. Guidance for 2026 remains robust, with projected revenue of $43.0 billion and gross margins expected to exceed 70%.
The rapid adoption of NVIDIA’s Blackwell AI supercomputers has played a crucial role in the company’s ongoing success. These next-generation systems, designed to handle the increasing complexity of AI workloads, have already generated billions in sales. CEO Jensen Huang emphasized the transformative impact of AI, with NVIDIA leading advancements in agentic and physical AI across industries. The company has established strategic partnerships with major cloud service providers, including AWS, Microsoft Azure, Google Cloud, and Oracle Cloud, all of which are integrating NVIDIA’s GB200 systems into their infrastructure to meet soaring AI demand. Further collaborations with Cisco to enhance AI networking, Verizon to power enterprise AI over private 5G networks, and healthcare leaders like IQVIA and Mayo Clinic to drive breakthroughs in genomics and drug discovery further expand its reach.
One of the most significant developments for NVIDIA is its involvement in the $500 billion Stargate Project, an ambitious AI infrastructure initiative aimed at reinforcing U.S. leadership in AI technology. The first phase of the project will deploy $100 billion to build advanced AI data centers, positioning NVIDIA at the core of this transformation. Beyond cloud computing, the company is expanding across multiple high-growth verticals. The launch of the GeForce RTX 50 Series, powered by the Blackwell architecture, introduces AI-driven enhancements for gaming and creative workflows, while its NVIDIA Drive platform continues gaining adoption among automakers such as Toyota and Hyundai, advancing the future of autonomous vehicles.
Despite its dominant market position and sustained revenue expansion, NVIDIA remains undervalued based on its long-term earnings potential. A conservative fair price estimate assumes a 20% EPS growth rate, well below the company’s actual trajectory, suggesting further upside. With an extensive AI ecosystem, growing industry partnerships, and continuous innovation, NVIDIA is well-positioned for further market leadership. If execution remains strong, the company’s stock presents a compelling investment opportunity, poised for substantial revaluation.
NVIDIA Corporation (NVDA) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 223 hedge fund portfolios held NVDA at the end of the fourth quarter which was 193 in the previous quarter. While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.