There’s no mistaking that Nvidia (NASDAQ:NVDA) is the undisputed king of AI. Its advances have sparked a revolution, powered markets, and made it the third-largest stock on Wall Street.
Last week, Nvidia once again delivered impressive results with its fiscal second-quarter earnings report. The company posted $30.04 billion in revenue and an EPS of $0.68, surpassing both top- and bottom-line expectations, while also providing Q3 guidance that exceeded forecasts.
Despite the solid numbers, investors seemed to be spooked by the slowing pace of quarter-over-quarter growth, concerns over delays with NVDA’s new Blackwell chips, and news that the U.S. Department of Justice is looking into antitrust violations at the company.
While Nvidia’s long-term dominance appears unshaken, the scale and speed of its future growth remain uncertain. The key question now is: how much longer can Nvidia sustain its impressive triple-digit year-over-year growth?
One investor, known by the pseudonym Stone Fox Capital, isn’t losing sleep over it, remaining confident that Nvidia’s golden run is far from over.
“Nvidia will eventually face a margin reckoning, but the company likely has another 1-2 years of strong margins before the competition catches up,” SFC opined.
SFC downplayed the threat from competitors like AMD and Intel, noting that their smaller sizes make fears of Nvidia losing market share over Blackwell production delays seem exaggerated.
SCF chalks up the much of the recent dip in NVDA shares to the potential DOJ action. However, even here the investor is not overly concerned, as there are no (public) claims that Nvidia is making it difficult for customers to switch to other chip providers.
For now, the investor views the dip as “an opportunity to load back up on the AI GPU stock.” SCF describes the company as “still firing on all cylinders,” and rates NVDA a Buy. (To watch Stone Fox Capital’s track record, click here)
Wall Street broadly agrees with SFC. In the past three months, Nvidia has received 39 Buy recommendations and just 4 Hold ratings, earning it a consensus Strong Buy rating. With a 12-month price target of $151.79, this implies potential gains of ~42%. (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.
