By Zev Fima
Publication Date: 2026-03-02 19:36:00
We’ve seen enough: The market is giving investors a gift of an entry point in Nvidia . Accordingly, we’re upgrading Nvidia back to our buy-equivalent 1 rating, in line with Jim Cramer’s commentary from Monday’s Morning Meeting . Nvidia reported a strong quarter with an even stronger guide on Wednesday night. And yet, the stock fell just over 9% over Thursday and Friday — a move that in no way reflects what we saw in the numbers and heard on the conference call about current and future demand for Nvidia’s best-in-class AI computing platform. Shares are erasing some of those two-day losses on Monday, but our overarching point about the befuddling post-earnings market reaction holds true. You can say the same thing about the way the stock has traded for many months. Despite a mountain of evidence that AI spending is going higher, Nvidia shares are trading at roughly the same price now as they were in August. That’s a seven-month consolidation. The upshot: The stock is much cheaper now because earnings estimates have priced in that firehose of AI spending. In August, the stock traded in the mid-30s on a forward price-to-earnings basis. Now it’s at 22 times forward earnings, the lowest level seen since last April’s tariff announcement. That’s already attractive. But, in our view, the stock could prove much cheaper in hindsight, as we believe many aren’t fully appreciating the magnitude of investments going into the “Fourth Industrial Revolution.” NVDA .SPX mountain…
