TLDR
- Nvidia to build AI supercomputers in the U.S. by 2026 with $500B investment.
- Long-term gains stay strong despite a recent stock dip.
- Analysts expect big earnings and revenue growth in May.
- Valuation is fair with strong profitability and cash flow.
- Nvidia leads AI and stays a top tech investment pick.
Nvidia Corporation (NASDAQ: $NVDA), the undisputed leader in graphics processing units (GPUs) and artificial intelligence (AI) infrastructure, is once again dominating headlines. With its stock closing at $110.71 on April 14, down a modest 0.20%, Nvidia continues to command attention amid groundbreaking developments in AI hardware. The company recently announced plans to mass-produce AI supercomputers entirely in the U.S. by 2026, a move that could reshape the global AI landscape and reinforce its technological dominance.
Nvidia’s roadmap is bold: a $500 billion infrastructure rollout over the next four years. This initiative aims to accelerate global AI adoption and secure U.S.-based production capabilities. For investors, the message is clear—Nvidia is not just riding the AI wave; it’s actively building it.
Despite Near-Term Dip, Long-Term Performance Stands Out
Despite a recent 8.83% dip in the past month, underperforming the broader Computer and Technology sector’s 4.81% loss and the S&P 500’s 3.56% decline, Nvidia remains a powerhouse of growth. The stock has delivered a 17.55% return year-to-date, significantly outpacing the S&P 500’s 8.09%. Even more impressive are its long-term numbers: a 25.58% gain over the past year, 421.62% over three years, and an astronomical 1,465.32% five-year return. Few companies can match Nvidia’s consistency in delivering shareholder value.
Strong Earnings Outlook and Analyst Confidence Fuel Optimism
Looking ahead, Nvidia’s earnings release on May 28, 2025, is expected to be a pivotal event. Analysts forecast earnings per share (EPS) of $0.93, a 52.46% year-over-year increase, and revenue of $43.22 billion, reflecting a massive 65.94% growth. For the full year, consensus estimates point to EPS of $4.41 and revenue of $198.54 billion, up 47.49% and 52.14% respectively. These projections underline the company’s ability to monetize its innovation across gaming, data centers, and automotive sectors.
The Zacks Rank of #2 (Buy) further supports a bullish outlook, reflecting recent upward revisions in earnings estimates. Over the past 30 days, the consensus EPS estimate rose by 0.47%, signaling analysts’ increasing confidence in Nvidia’s near-term prospects. The Zacks ranking system, which identifies stocks based on revisions and growth potential, has consistently outperformed the market, with #1 ranked stocks delivering 25% average annual returns since 1988.
Valuation Still Attractive for Long-Term Investors
Nvidia’s valuation metrics remain strong and relatively justified given its growth. The stock trades at a forward P/E ratio of 25.18, slightly above the industry average of 24.56. However, its PEG ratio of 0.98 versus the industry average of 1.69 suggests it’s trading at a fair price relative to its earnings growth. This valuation sweet spot makes Nvidia appealing to both growth and value investors.
Financially, Nvidia continues to deliver staggering profitability. The company boasts a profit margin of 55.85%, return on assets of 57.42%, and an eye-popping return on equity of 119.18%. It’s $130.5 billion trailing twelve-month revenue and $72.88 billion net income reflect exceptional operational efficiency. With $43.21 billion in cash and a modest debt-to-equity ratio of 12.95%, Nvidia is well-capitalized to support future investments, share buybacks, or strategic acquisitions. Its levered free cash flow of $44.17 billion further cements its financial flexibility.
Conclusion: Positioned at the Center of AI’s Future
From a macro perspective, Nvidia’s expansion into U.S.-based AI supercomputers could insulate it from geopolitical risks and further strengthen its competitive moat. As the global race for AI dominance accelerates, Nvidia’s end-to-end ecosystem—from chips to full-stack AI infrastructure—positions it as a foundational player in the digital economy.
In conclusion, Nvidia’s momentum remains strong, supported by visionary leadership, a fortress-like balance sheet, and relentless innovation. With massive AI investments on the horizon and earnings likely to beat expectations, NVDA could be poised for another bullish leg. For investors seeking exposure to the future of technology, Nvidia remains a must-watch and arguably, a must-own stock.
