Over the past few weeks, Nvidia Corporation (NASDAQ:NVDA)‘s stock prices have been in a place they rarely visit: in the red. Indeed, over the past month, shares of NVDA are down about 7.5%.
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Macroeconomic concerns, worries about decreasing AI capex spending, and uncertainty surrounding U.S.-China geopolitics (China is NVDA’s second largest market after the U.S.) are among the reasons that shares have been slipping. Adding to the malaise, the Fed last week shared that is anticipating only two rate cuts for next year, versus the four that had been previously expected.
One top investor, known by the pseudonym The Asian Investor, believes that this current dip presents a great buying opportunity.
“Nvidia is set for multi-year growth in the market for accelerated computing through its top-shelf GPU products, and the chip enterprise is expected to keep growing its EPS at double-digits annually for the foreseeable future as well,” writes the 5-star investor, who sits in the top 3% of TipRanks’ stock pros.
The Asian Investor explains that Nvidia is at the cusp of more major gains thanks to the rapid pace of technological innovation in the GPU market.
“Nvidia, as an example, projects that GPU performance is set to grow exponentially—by 1,000X within 10 years—creating a huge upgrade opportunity for Nvidia and its large Data Center customers,” the investor adds.
The Asian Investor expands that the faster pace will mean that upgrade and refresh cycles will likely be shortening, further increasing demand for AI hardware. In addition, the short supply of AI-optimized GPUs will push prices higher, notes the investor.
With the increasing demand for both Blackwell and Rubin (expected in 2026), The Asian Investor is expecting Nvidia to continue growing both revenues and profits. “At its current rate of growth, it is entirely possible for Nvidia to generate more than $100B next year in both operating income as well as free cash flow,” sums up The Asian Investor, who believes that 25% annual EPS growth over the next five years seems very realistic.
The investor concludes that the strong business case coupled with dropping share prices “creates an engagement opportunity for investors with a long-time horizon.” The Asian Investor is therefore rating NVDA a Strong Buy. (To watch The Asian Investor’s track record, click here)
Not surprisingly, Wall Street reflects The Asian Investor’s optimism regarding Nvidia. With 37 Buy and 3 Hold ratings, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $177.14 would yield gains of some 31.5% in the year to come. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
