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.