By Rick Munarriz
Publication Date: 2026-10-30 17:48:00
With its market-leading $5.2 billion valuation, Nvidia (NVDA -4.90%) isn’t sneaking up on anybody these days. The poster child of the AI revolution is the largest provider of accelerators and other chips and hardware solutions fueling the AI boom.
It has come a long way from its early days, when it largely served gaming enthusiasts. It’s playing a bigger game these days, but is the company currently wearing the market-cap crown a trick or a treat as we head into the final two months of this year and beyond? Let’s take a closer look at the bad and the good of Nvidia as an investor right now. I’ll wrap it up with my own read on where Nvidia stands as a potential portfolio position.
Image source: Getty Images.
It’s a trick
There are some compelling knocks on Nvidia despite its stellar growth and compelling forward valuation. I may as well start with the historically cyclical nature of this business. Nvidia has delivered monster growth for years, only to stumble spectacularly.
After three consecutive years of delivering 20% to 40% top-line growth, revenue declined 7% in fiscal 2020. I want to cut you off before you blame the COVID-19 crisis. Nvidia’s fiscal year ended in January of 2020. The pandemic may have been percolating overseas in the final few weeks of that fiscal year, but the U.S. shutdown didn’t take place until mid-March of the 2020 calendar year, a month and a half into Nvidia’s fiscal 2021.
Nvidia would recover quickly with revenue spurts of 53% and 61% in the…
