By Adria Cimino
Publication Date: 2026-03-03 11:10:00
Nvidia (NVDA +3.04%) hasn’t generally been known as a dirt cheap stock. Investors have rushed to get in on this artificial intelligence (AI) leader over the past several years, and that’s pushed valuation higher. The company has established itself as the dominant AI chip company, so investors expect this player to benefit as the high-growth AI story unfolds.
And Nvidia has benefited from AI since the technology’s earliest days, as a matter of fact. Customers love the company’s powerful graphics processing units (GPUs), or AI chips, as well as the portfolio of related products that help them get the AI job done.
Nvidia stock has soared over time thanks to this leadership, but in recent months, investors have hesitated to get in on AI stocks. And this has dragged down Nvidia stock — and its valuation. Is Nvidia a no-brainer buy right now? Let’s find out.
Image source: Getty Images.
Nvidia’s successes
So, first, let’s take a quick look at Nvidia’s success story and then at the elements that have thrown stock performance off track. As mentioned, Nvidia has become an AI superpower, selling the world’s most powerful chips and accompanying products. This has driven explosive growth over the past few years, and the recent quarter confirms the ongoing momentum.
In the fourth quarter, Nvidia’s revenue and profit surged in the double digits to $68 billion and $42 billion, respectively. Revenue has reached record levels, driven by demand from AI data center customers.
Though…
