The Anti-Nvidia Trade Has 3 Irrational Flaws
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Uttam Dey4.97K FollowersFollow5ShareSavePlay(12min)Comment(1)SummaryNvidia Corporation remains a dominant AI force, delivering a 32% return in 2025 despite heightened scrutiny and skepticism.The GPU maker's growth is underpinned by accelerating neocloud demand, robust revenue inflection, and gross margin expansion toward the mid-70s in FY26.Forward earnings multiples have compressed to just 23-24x FY27 EPS, making NVDA stock cheaper than many value and tech peers despite 59% projected EPS growth.I reiterate a Strong Buy rating for NVDA stock, seeing at least 23-25% upside as skepticism overhangs an increasingly attractive valuation. Umnat Seebuaphan/iStock via Getty Images Investment Thesis 2025 has been a unique and interesting year for the shares of the largest GPU maker in the world, Nvidia Corporation (NVDA). We’re near the end of 2025, and Nvidia’s shares are returning ~23.6%. ToThis article was written byUttam Dey4.97K FollowersFollowUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.