Is NVDA a good stock to buy? We came across a bullish thesis on NVIDIA Corporation on Equity Analysis’s Substack. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation's share was trading at $180.25 as of March 13th. NVDA’s trailing and forward P/E were 36.79 and 22.47, respectively according to Yahoo Finance.

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NVIDIA Corporation is increasingly positioned not just as a semiconductor company but as the foundational infrastructure provider for accelerated computing and artificial intelligence. Originally known for gaming GPUs, the company has evolved into a dominant platform powering AI, data centers, and high-performance computing through a tightly integrated stack of advanced semiconductors, high-speed networking, and proprietary software. Read More: 15 AI Stocks That Are Quietly Making Investors Rich

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Its business is primarily driven by the Compute & Networking segment, which generates nearly 90% of revenue and the vast majority of operating profit, reflecting the structural shift toward AI infrastructure. Within the semiconductor ecosystem, NVIDIA operates as a fabless designer, relying on partners such as Taiwan Semiconductor Manufacturing Company for fabrication while focusing on processor architecture, system integration, and its proprietary CUDA software ecosystem.

This ecosystem creates significant switching costs for customers, allowing NVIDIA to maintain an estimated 80–90% share of the AI training accelerator market and remain deeply embedded in the infrastructure of major cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud. Despite near-term volatility caused by geopolitical tensions and U.S.–China chip export restrictions, the company’s operational performance remains exceptionally strong, with FY2026 revenue reaching $215.9 billion and continued growth driven by the Data Center segment.

Profitability and cash generation are equally robust, supported by high gross margins and massive free cash flow, while the balance sheet holds a substantial net cash position. The investment thesis centers on the view that the market is undervaluing NVIDIA relative to its growth trajectory and structural advantages.

With AI demand expanding from model training into inference and agentic AI applications, compute infrastructure is increasingly tied to revenue generation for hyperscalers, extending the duration of the investment cycle. Given compressed valuation multiples relative to historical levels despite strong projected growth, the stock presents an attractive risk-reward profile, with a base-case valuation of approximately $300 per share based on normalized earnings and a moderate multiple expansion.

Previously, we covered a bullish thesis on NVIDIA Corporation (NVDA) by Compounding Your Wealth in April 2025, which highlighted the company’s dominance in AI accelerators, the strength of its Data Center segment, and the durable moat created by its CUDA ecosystem. NVDA's stock price has appreciated by approximately 62.48% since our coverage. Equity Analysis shares a similar view but emphasizes NVIDIA’s expanding role as a full-stack AI infrastructure platform.

NVIDIA Corporation is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 264 hedge fund portfolios held NVDA at the end of the fourth quarter which was 234 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 time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.