Investment Opportunities Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy NVDA?
Source: Fool
- Microsoft's Value Rebound: Microsoft's operating profit valuation is nearing its lowest level outside of the 2023 sell-off, and despite recent weakness, its strong growth in the latest earnings report highlights a rare buying opportunity for investors.
- Trade Desk's Slowing Growth: The Trade Desk reported an 18% year-over-year growth in Q3, facing challenges due to reduced political ad spending; however, with a projected 17% revenue growth for 2026, its current low valuation presents a compelling entry point for investors.
- Nvidia's Undervalued Stock: Nvidia trades at a mere 24 times forward earnings, despite a projected 64% growth in FY 2027, and with global data center capital expenditures potentially reaching $3 trillion to $4 trillion by 2030, investors should seize this undervalued opportunity.
- Sustained AI Spending Growth: As AI spending is expected to continue increasing over the next few years, Nvidia stands out as a must-buy stock in the current market environment, making it essential for investors not to miss this opportunity.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 187.980
Low
200.00
Averages
264.97
High
352.00
Current: 187.980
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growing Market Demand: Expected capital expenditures from cloud service providers are projected to reach $650B in 2026, up from over $400B in 2025, reflecting sustained demand for Nvidia's products.
- New Product Outlook: The average selling price for Vera Rubin is expected to be 40% to 50% higher than that of GB300, potentially adding around $8B in revenue for Nvidia, further solidifying its market leadership.
- Market Size Expansion: With China now included, Nvidia's total addressable market is estimated to be around $4T, showcasing its dominant position in the global AI platform and future growth potential.
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- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
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- Custom Chip Business Growth: Amazon's custom chip business within AWS has surpassed a run rate of $10 billion and continues to grow at a triple-digit percentage rate year-over-year, highlighting the company's increasing competitiveness in AI accelerators and processors.
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- Earnings Potential Analysis: Oppenheimer anticipates Nvidia's Q4 sales could see a typical upside of $2B to $3B, primarily driven by the GB300 Ultra, indicating strong performance in the AI sector.
- Growing Market Demand: Expected capital expenditures from cloud service providers are projected to reach $650B in 2026, up from over $400B in 2025, reflecting sustained demand for Nvidia's products.
- New Product Outlook: The average selling price for Vera Rubin is expected to be 40% to 50% higher than that of GB300, potentially adding around $8B in revenue for Nvidia, further solidifying its market leadership.
- Market Size Expansion: With China now included, Nvidia's total addressable market is estimated to be around $4T, showcasing its dominant position in the global AI platform and future growth potential.
See More
Nvidia's Stock Pullback Presents Investment Opportunities
- Weak Market Performance: Since August 2025, Nvidia's stock has only risen by 5%, significantly lagging behind the S&P 500's 10% gain, indicating market caution regarding its future growth despite optimistic prospects in the AI sector.
- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
See More
Investment Opportunities in High-Quality Stocks
- Broadcom's Growth Potential: In fiscal 2025, Broadcom's AI chip sales surged by 65% to $20 billion, accounting for 31% of its total revenue, indicating that its strong performance in AI will offset slower growth in non-AI chips and infrastructure software, thereby enhancing overall company performance.
- Optimistic Future Outlook: Analysts expect Broadcom's revenue and adjusted EPS to grow by 52% and 51%, respectively, in fiscal 2026, which presents an attractive growth potential for a stock currently trading at 32 times forward earnings, likely appealing to long-term investors.
- IBM's Transformation Journey: Since Arvind Krishna became CEO in 2020, IBM has successfully achieved revenue and adjusted EPS growth of 8% and 12%, respectively, in fiscal 2025 by spinning off its low-growth managed infrastructure services segment and expanding its hybrid cloud and AI businesses, demonstrating the effectiveness of its business model.
- Market Competitive Strategy: IBM's use of acquired Red Hat to launch open-source applications that facilitate data flow between private and public clouds has attracted large enterprises that are not yet ready to fully migrate to public cloud, and this flexible
See More
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- AI Spending Plans: Amazon plans to increase its artificial intelligence spending to $200 billion by 2026, a nearly $70 billion increase from 2025, indicating a strong commitment to AI investment that could further solidify its leadership in the cloud computing market.
- Custom Chip Business Growth: Amazon's custom chip business within AWS has surpassed a run rate of $10 billion and continues to grow at a triple-digit percentage rate year-over-year, highlighting the company's increasing competitiveness in AI accelerators and processors.
- Partnership with Marvell: Amazon has signed a five-year agreement with Marvell Technology to secure the supply of its Trainium chips; although Marvell's stock has struggled, its networking chip business remains a significant growth area in data centers.
- Optimistic Market Outlook: Despite competition with Microsoft, Marvell anticipates a substantial increase in custom AI accelerator revenue by fiscal 2028, and its recent acquisition in AI interconnect chips suggests strong potential in the rapidly evolving data center market.
See More
Amazon's $200 Billion Capital Expenditure Plan for 2026
- Significant Capital Expenditure Increase: Amazon plans to boost its capital expenditures to $200 billion in 2026, representing a nearly $70 billion increase from 2025, reflecting the company's strong commitment to cloud computing and AI investments aimed at solidifying its market leadership.
- Custom Chip Business Growth: Amazon's custom chip business is now running at over $10 billion annually and growing at a triple-digit percentage rate, particularly with surging demand for Trainium chips, which is expected to be fully supplied by mid-2026, enhancing the company's competitive edge in the AI sector.
- Partnership with Marvell: Amazon has solidified a five-year agreement with Marvell to design and supply its Trainium chips, and despite Marvell facing market challenges, its networking chip business remains a significant revenue source, indicating potential in the AI accelerator market.
- Optimistic Market Outlook: Despite competitive pressures, Marvell forecasts a substantial increase in custom AI accelerator revenue by fiscal 2028, aligned with the design progress of Microsoft's Maia 300 chip, suggesting that the company still presents a strong investment opportunity in the rapidly evolving custom silicon solutions market.
See More
AMD Secures $300 Million Loan for Crusoe AI Infrastructure
- Loan Arrangement: AMD is set to provide up to $300 million in loans to AI infrastructure startup Crusoe, arranged by Goldman Sachs and secured by AMD's chips and related equipment, which is expected to help Crusoe secure a lower interest rate of about 6%.
- Leaseback Agreement: AMD has agreed to lease back the processors if Crusoe cannot secure sufficient demand from customers like AI developers, ensuring not only the utilization of AMD's equipment but also potentially enhancing Crusoe's competitive position in the market.
- Data Center Development: Crusoe plans to install AMD's chips in a new data center in Ohio, built by Canadian developer 5C, which is expected to drive Crusoe's annual spending to $4 billion over the next decade, further solidifying its position in the AI infrastructure sector.
- Investor Relations: Nvidia, a key investor in Crusoe, participated in its $600 million Series D funding round in 2024 and its $1.375 billion Series E round in October 2025, pushing Crusoe's valuation above $10 billion, reflecting Nvidia's strong confidence in the AI infrastructure market.
See More
