Apple's lower valuation, services strength and AI strategy may offer a better growth-stability balance than NVIDIA despite its AI dominance.
I keep buying NVIDIA, and the recent pullback handed me another reason to do it again.
Nvidia stock (NASDAQ: NVDA) is lagging the semiconductor rally despite another blockbuster quarter from the world's most important AI chipmaker. The paradox is hard to ignore because Nvidia just reported 85% revenue growth, guided for about $91 billion in revenue next quarter and chief executive Jensen Huang described the AI buildout as “the largest infrastructure expansion in human history.
Nvidia just announced a warm-water cooling system that it says can dramatically reduce the amount of water a data center uses — eliminating “pretty much all water usage” inside the data center itself, according to an Nvidia executive in a press release.
Nvidia Corporation's acquisitions are small, strategically focused on enhancing its AI hardware/software stack, while investments target both upstream suppliers and downstream customers to strengthen its ecosystem. Minority investments in rapidly growing neoclouds like CoreWeave and Nebius directly boost NVDA's chip demand and improve its competitive positioning against hyperscalers. Nvidia's investment gains are positive but not material to valuation; the strategic intent is ecosystem expansion, supporting long-term demand for its AI solutions.
Nvidia shares have underperformed the VanEck Semiconductor ETF (SMH) in 2026, with the chipmaker up 12% compared to the fund's nearly 85% surge. The chip stock has largely sat on the sidelines as Wall Street turns its focus on memory chips and infrastructure in the next steps of the artificial intelligence buildout.
Nvidia's 85% revenue growth and 147% operating income growth vastly outpaces its valuation of just 23.5x forward P/E. Nvidia's $95 billion in supply chain obligations over three quarters implies at least $285 billion in revenue. This is further validated by hyperscaler capex guidance of $710 billion-$725 billion. Depreciation concerns are overblown: Conservative payback analysis shows H200 GPUs recover their $30,000 cost in 2.3 years; the remaining 1.7 years are pure profit for asset owners.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) at $208 looks mispriced relative to its growth.
Nvidia NVDA shares traded lower on Monday, falling 0.75% to $209.11 in trading as investors weighed developments in US-Iran peace talks. The move followed a 3% gain on Thursday.
As tech giants hunt for massive amounts of clean electricity, PNNL, Nvidia and Fervo Energy are partnering to develop a new public tool that aims to eliminate the guesswork of drilling into the Earth's molten depths.
Shares of Super Micro Computer are surging Monday morning as investors cheer new details about the company's relationship with artificial-intelligence giant Nvidia.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) sits at the center of what CEO Jensen Huang calls “the buildout of AI factories, the largest infrastructure expansion in human history.