Nvidia (Nvda 0.34%)) has been THE The stock of artificial intelligence (AI) to have since 2023. Its performance during this period has been incredible and its latest results were no exception. However, Wall Street seems to be bored with the stock.
Similar to the way in which a sporting franchise can be loved at the start of a dynasty race, then hated at the end, Nvidia no longer seems to capture market attention. He reported fantastic fourth quarter results for his year for the 2025 financial year (completed on January 26), and yet the stock sold.
So is it a great time to take care of the stock? I have three reasons why investors should be optimistic about NVIDIA’s actions, not downgraded.
1. Blackwell growth
Nvidia Graphic processing units (GPU) have fueled the AI revolution because they can compete in parallel. This makes them perfectly adapted to assume complex IT tasks such as the training of AI models. Most of the AI formation that we have seen to date has occurred on Hopper architecture in Nvidia, but this is replaced by its latest design: Blackwell.
Blackwell GPUs offer significant performance increases compared to the previous topper design, including four times faster training on AI. In addition, AI inference (which is when an AI model receives an input and a user expects an output) is 20 times cheaper than the Hopper 100 GPU (H100). Blackwell GPUS will unlock a new AI innovation phase that we have not yet known, and this will continue to be a boost for Nvidia throughout the year.
Although Blackwell Chips represents $ 11 billion $ 35.6 billion in Nvidia data center income, they still speed up production on this product that changes the situation. However, this rise in power also caused a negative thing on which Wall Street concentrated during the fourth quarter: the drop in raw margins. Nvidia’s management was aware of this, because its raw margins went from the midfielder to 70% to 73% in the fourth quarter. This model should persist through the first quarter but recover by the end of the year because they become more effective in producing Blackwell GPUs.
The big article here is to know that these margins will restore, and Nvidia puts the customer first by leaving as much of his innovative blackwell chips as possible. This increase will continue to increase NVIDIA’s income, and investors should be very optimistic about it, even if its raw margins drop in the short term.
2.
There has never been a company the size of Nvidia which supported growth rates as high as during its recent race. In the fourth quarter, income increased by 78% from one year to the next and 12% compared to the third quarter. For the first quarter, the management provides income of $ 43 billion, which indicates growth from one year to the other of 65% and growth of 9% in the quarter. However, NVIDIA’s management has history of under-guidance and sudeMance, so that the real figures can be higher in a few percentage points.
It is an amazing growth for a company the size of Nvidia, and Wall Street expects that growth persists throughout this year and after. For the current exercise and next year, Wall Street analysts expect revenue growth of 57% and growth of 22%, far exceeding many major technological peers from Nvidia are implementing.
There is still a lot of growth in AI space and other industries that Nvidia supports. Growth is far from over for Nvidia, and that’s another upward reason to buy the stock.
3. The Nvidia stock is at the time limit right now
Nvidia’s actions have sometimes looked rather expensive throughout their period in recent years, but I would say that they are starting to look pretty cheap.
NVDA PE ratio data by Ycharts.
NVIDIA is now negotiated about 43 times 28 times income in the long term And displays phenomenal growth figures. Let us contrast that with other large current technological companies (like some of the seven magnificent).
NVDA PE ratio data by Ycharts.
Although Nvidia is always the most expensive by its P / E dragged ratio, it is not much. When term income is taken into account, Nvidia is the cheapest of these other large technological companies.
So why would you buy one of these three others when you can buy the company with the most to benefit from the most important innovation from the Internet? That’s exactly why Nvidia is a screaming purchase at the moment, And investors are expected to take care of the action after the weakness of their last profits.
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Keithen Drury has positions in Amazon and Nvidia. The Motley Fool has positions and recommends Amazon, Apple, Microsoft and Nvidia. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.