Nvidia (NASDAQ:NVDA) has experienced staggering growth over the past few years, evolving from a leading AI chipmaker into one of the largest companies in the world. Its triple-digit year-over-year revenue surges have catapulted its market valuation into the trillions.
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The challenge now? Sustaining this blistering pace. After all, history suggests that as companies transition from high-growth phases to value-driven stages, a natural slowdown often follows.
However, a top investor, known by the pseudonym Juxtaposed Ideas, believes this shouldn’t deter investors from bolstering their Nvidia positions.
“While the law of large numbers may have caught up to NVDA’s growth profile, we believe that it may continue to deliver robust performance moving forward,” writes Juxtaposed, who is ranked among the top 4% of stock experts on TipRanks.
Juxtaposed’s bullish stance is rooted in several factors, both specific to Nvidia and tied to broader market trends.
The investor points out that AI adoption continues to accelerate across mega tech firms, small- and medium-sized enterprises, and governments. With market analysts expecting the AI market to grow at a CAGR of 28.4% by 2030, Juxtaposed believes there is plenty of room left for Nvidia to keep expanding.
“These developments continue to point to the durability of AI demand, with sales growth naturally gated by supply, in this case, the AI chips’ computing power,” the investor adds.
Juxtaposed also underscores Nvidia’s unmatched leadership in the AI space. Its Blackwell chips remain the top choice among the biggest tech firms in the world including Microsoft, Google, Meta, and Amazon.
It is therefore no surprise to Juxtaposed that NVDA’s forward guidance remains ‘promising,’ with FQ4 2025 revenue expectations of $37.5 billion translating into ~70% year-over-year growth.
And yet, despite all the past growth and bullish prognosis, Juxtaposed believes that Nvidia is still reasonably priced. Its Forward PEG non-GAAP ratio of 1.23x is a healthy notch below the sector mean of 1.94x, while also comparing nicely with its direct competitors AMD (1.00x) and Broadcom (1.72x).
“NVDA may remain the linchpin during the multi-year generative AI boom,” concludes Juxtaposed, assigning a Buy rating to NVDA shares. (To watch Juxtaposed Ideas’ track record, click here)
Wall Street is fully on board the Nvidia train as well. With 37 Buy and 3 Hold recommendations, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $176.14 implies a ~26% upside for the coming year. (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.
