Nvidia (NASDAQ:NVDA) stock may not be the first name that comes to mind for value investors, given its ~$3 trillion market cap and meteoric rise over the years, fueled by the AI revolution it helped usher in.
Some fear that such rapid growth may be difficult to sustain. Reflecting these concerns, Nvidia’s shares have fallen around 15% in 2025, amid rising competition from DeepSeek, mounting tariffs, and tightening export restrictions from China, among other factors.
However, one investor, known by the pseudonym Cash Flow Venue, believes these fears are deeply misguided.
“Despite perceived overvaluation, NVDA’s consistent growth and leadership in AI revolution justify continued investment,” asserts the investor.
Cash Flow points to two recent developments that inspire confidence in Nvidia’s prospects: the company’s recent acquisition of synthetic data start-up Gretel and the corporate roadmap NVDA presented at its GPU Technology Conference (GTC).
The investor believes that the Gretel acquisition – which has not been formally announced – will allow Nvidia to further cement its industry-leading position in the AI revolution as the chipmaker integrates the start-up’s synthetic data to help train its models.
Meanwhile, last week’s GTC conference offered a glimpse into Nvidia’s long-term vision. What stood out to Cash Flow Venue was the forecast that data center capex will exceed $1 trillion in 2028, up from the $250 billion that was spent in 2023.
“It simply comes down to one question: do I believe that this market will continue to grow? Yes, I think it will, and as long as it does, Nvidia will keep reestablishing its leadership position and growing its business,” the investor opined.
To be clear, Cash Flow Venue isn’t blind to the risks – geopolitical headwinds, market volatility, and sky-high expectations could shake things up. But the takeaway is simple: “Ignore the noise. Stick to champions.”
No surprise, then: Cash Flow rates Nvidia shares as a Strong Buy rating. (To watch Cash Flow Venue’s track record, click here)
Wall Street clearly feels much the same way. With 39 Buy and 3 Hold ratings, NVDA claims a Strong Buy consensus rating. Its 12-month average price target of $176.54 would yield gains approaching 55% in the year ahead. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.