Nvidia: Top 5 Reasons To Keep Buying (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Nvidia Corporation's rapid innovation cycle, led by Blackwell and upcoming Rubin platforms, positions it to capture mega-growth themes in AI, industrial, and agentic markets.
• Leading revenue indicators from Foxconn's (a key supplier for Nvidia) monthly revenue trends, data on Nvidia's quarterly growth cadence, and commentary points to a strong Q3 ahead.
• Gross margin recovery to the mid-70s% is expected by the end of FY 2026. However, I acknowledge that this may be priced in the stock.
• NVDA looks like an ideal GARP stock, as its earnings growth expectations continue to remain very robust, yet its valuation multiple has contracted and fallen below sector medians.
• China market risks due to geopolitical hurdles and grey market competition persist, but this is becoming less impactful as revenue exposure to China declines to single digits.

Read the full article here.