NVIDIA Corporation (NVDA): A Bull Case Theory

We came across a bullish thesis on NVIDIA Corporation on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation's share was trading at $191.52 as of January 28th. NVDA’s trailing and forward P/E were 46.66 and 24.63, respectively according to Yahoo Finance.

NVIDIA Corporation, a computing infrastructure company, provides graphics and compute, and networking solutions in the United States and internationally. NVDA free cash flow per share has surged 15x since 2023, driven primarily by persistent AI scaling laws, which link increased compute to higher intelligence and adoption. The company’s Blackwell and Rubin platforms alone are expected to generate $0.5 trillion in revenue from 2025 through 2026, underscoring the massive market opportunity.

Management highlights that the three AI scaling laws—pre-training, post-training, and inference—remain intact, creating a virtuous cycle where improved AI intelligence drives broader adoption and further profit growth. This dynamic is evident across the tech ecosystem, with Singularity Scalers like Microsoft, Palantir, and Meta seeing tangible top-line and bottom-line improvements. Microsoft’s 365 Copilot adoption, for instance, grew 50% quarter-over-quarter, reflecting the rapid integration of AI into enterprise workflows, code assistance, and productivity tools.

Despite enormous CapEx, Nvidia’s free cash flow per share continues to rise, reflecting the non-linear value creation enabled by AI, rather than financial engineering. The analogy to the U.S. railroad infrastructure highlights the point: well-managed companies that deploy infrastructure to deliver incremental value—whether railroads in the 19th century or AI compute today—tend to compound free cash flow and shareholder returns over time. Union Pacific’s 6.25x free cash flow per share growth since 2010 exemplifies this pattern.

For investors, the implications are clear: companies that harness AI effectively, improve unit economics, and scale intelligence are likely to see sustained free cash flow growth, even amid booms and busts. With exponential compute demand, accelerating adoption, and demonstrable profitability, Nvidia represents a leading example of durable value creation, making it a compelling long-term opportunity with outsized upside potential.

Previously, we covered a bullish thesis on NVIDIA Corporation (NVDA) by Compounding Your Wealth in April 2025, which highlighted the company’s leadership in AI, dominance in the Data Center segment, and strong free cash flow despite margin compression. NVDA’s stock price has appreciated by approximately 72.64% since our coverage due to robust AI-driven growth. Antonio Linares shares an identical perspective but emphasizes the de-risked valuation and reinforced long-term outperformance potential.

NVIDIA Corporation is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 234 hedge fund portfolios held NVDA at the end of the third quarter which was 235 in the previous quarter. While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.