Is NVIDIA Corporation (NVDA) A Good Stock To Buy Now?

May 3, 2026 - 23:01

A recent analysis on Long-term Investing's Substack by Sanjiv makes a bullish case for NVIDIA Corporation. The stock was trading at $199.64 as of April 23rd, with a trailing P/E of 40.74 and a forward P/E of 24.51. The thesis argues that despite recent volatility, NVIDIA remains a strong long-term play due to its dominant position in the AI chip market.

The core of the argument centers on NVIDIA's data center business, which has seen explosive growth as companies race to build out AI infrastructure. The author notes that the forward P/E, which is significantly lower than the trailing multiple, suggests that earnings are expected to rise sharply in the coming year. This compression in the valuation multiple, combined with sustained demand for GPUs, makes the stock look attractive at current levels.

However, the thesis also acknowledges risks. Competition from AMD and custom chips from cloud giants like Amazon and Google could erode NVIDIA's market share over time. any slowdown in AI spending or a broader tech downturn could hit the stock hard. The author concludes that for investors with a multi-year horizon, the current price offers a reasonable entry point, but warns against expecting the same triple-digit gains seen in 2023. The bottom line is that NVDA is a high-conviction buy for those who believe AI adoption is still in its early stages.