- I am bullish on Nvidia Corporation’s growth prospects due to healthy RPO growth, a 3.2% growth increment from Stargate demand, and encouraging growth signals from a key supplier.
- Gross margins are guided to dip almost 300bps in Q1 FY26, but I believe there are reasons to trust management’s assurances that it would rebound back toward the mid-70s later.
- TSMC’s avoidance of hefty tariffs benefits NVDA, but rising receivable days and tariff risks remain key concerns to watch as it spell a deterioration in FCF margins.
- NVDA’s valuations are attractive and close to 4-yr trough lows at below 30.0x 1-yr forward P/E.
- But the technical charts suggest it may be better to wait a bit longer for a buy signal near monthly support, which is still a 13% price drop away.
Performance Assessment
Nvidia Corporation (NASDAQ:NVDA) has undergone a sharp correction since my last coverage of the stock: I did not rate it a “Sell” because the stock is still a long-term buy in my view. Providing alpha-generating investment ideas. I am an independent investor managing my family’s portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performance.I have a generalist approach as I explore, analyze and invest in any sector so long there is perceived alpha potential vs the S&P500. The typical holding period ranges between a few quarters to multiple years.It is a good idea to review the ratings history for the articles published by authors. This gives you another indication of how often the author’s recommendations work out, which is a proxy for genuine investing and alpha-generating skill.Associated with Seeking Alpha account VishValue Research.
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