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Nvidia: $187 AI Core Stock, not Priced Like a Bubble

Investing.com Logo Investing.com • •By Itai Smidt
Nvidia: $187 AI Core Stock, not Priced Like a Bubble

Nvidia trades at $187 with a forward P/E of 24-40x while growing revenue and EPS at 40-60% annually. Despite a $4.5T valuation, the stock is not overpriced relative to fundamentals compared to other mega-caps. The company benefits from structural AI infrastructure demand, strong ecosystem moat via CUDA, and expanding margins. Key risks include geopolitical restrictions on chip exports to China, customer concentration (61% from four hyperscalers), and power grid constraints. The analyst rates Nvidia as a long-term Buy with a 2026 target around $340.7, acknowledging potential 30-40% drawdowns.

Insights
NVDA   positive

Strong fundamentals with 40-60% revenue/EPS growth, 73.6% gross margins, expanding operating leverage, and a defensible CUDA moat. Forward P/E of 24-40x is reasonable relative to growth rates and comparable to S&P 500 despite superior metrics. Long-term Buy rating with $340.7 target implies 50-90% upside, though risks from geopolitical restrictions and customer concentration are acknowledged.

Keywords
#AI infrastructure #data center #Blackwell architecture #CUDA ecosystem #chip exports #customer concentration #valuation #geopolitical risk

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NVDA COST WMT CSCO
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