NVIDIA Corporation (NVDA): A Bull Case Theory

We came across a bullish thesis on NVIDIA Corporation (NVDA) on Kontra Investments Substack. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation (NVDA)'s share was trading at $139.19 as of 29^th May. NVDA’s trailing and forward P/E were 45.85 and 31.25 respectively according to Yahoo Finance.

NVIDIA Corporation (NVDA) once again exceeded Wall Street expectations, marking its eleventh consecutive quarter of outperformance with first-quarter revenues of $44.06 billion, a 69% increase year-over-year. Profits surged 26% to $18.8 billion, and adjusted EPS reached $0.96, surpassing estimates.

Looking ahead, the company forecasts $45 billion in revenue for the upcoming quarter, signaling continued momentum despite geopolitical headwinds, including trade restrictions with China. These restrictions, particularly around the H20 chip, led to an estimated $4.5 billion in lost revenue and inventory write-downs. Still, CEO Jensen Huang remains confident, pointing to the accelerating global demand for AI infrastructure.

NVIDIA’s core strengths are anchored in its data center and gaming segments. Data center revenues, led by surging networking demand, totaled $39.1 billion, while gaming came in strong at $5 billion, fueled by the release of Blackwell GPUs. Hyperscale clients are adopting NVL72 racks at an aggressive pace, underscoring NVIDIA’s pivotal role in powering AI deployments.

Supply chain concerns have eased, with stabilized inventory and alignment between production and deployment. The company generated $26.2 billion in free cash flow this quarter, enabling ongoing investment and shareholder returns through buybacks. Geographically, NVIDIA is diversifying its revenue base; Singapore’s contribution has grown, while China now accounts for just 13% of revenues.

Major global AI projects, including the Stargate initiative, Saudi Arabia’s sovereign AI efforts, and a 5GW UAE campus, point to immense upside. With resilient fundamentals, leading-edge technology, and exposure to AI’s global buildout, NVIDIA remains a premier investment opportunity with strong long-term upside.

Previously, we have covered NVIDIA Corporation (NVDA) in April 2025 wherein we summarized a bullish thesis by Compounding Your Wealth on Substack. The author highlighted NVIDIA’s dominant position in AI and accelerated computing, with its Data Center segment driving 88% of revenue and commanding over 95% of the AI accelerator market. Despite signs of deceleration and margin compression, the article argued that NVIDIA’s strong balance sheet, proprietary CUDA ecosystem, and de-risked valuation offered a compelling long-term growth opportunity. Since our last coverage, the stock is up 25.7% as of 29^th May.

NVIDIA Corporation (NVDA) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 212 hedge fund portfolios held NVDA at the end of the first quarter which was 223 in the previous quarter. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.