Nvidia: Ride The Next $1 Trillion Wave

(13min)

Summary

  • Nvidia's Q1 FY2026 showed strong resilience with a revenue/EPS double beat, despite a$4.5B H20 charge from U.S. export controls impacting China sales and gross margins significantly.
  • Data Center revenue soared 73% YoY to $39B, driven by rapid Blackwell adoption (70% of DC compute revenue) and massive deployments by hyperscalers like Microsoft for AI.
  • Surging AI inference demand and emerging Sovereign AI initiatives (e.g., Germany, Saudi Arabia) are set to diversify Nvidia's customer base and fuel future top-line growth beyond hyperscalers.
  • Beyond core GPUs, record Gaming revenue, booming Networking (NVLink, Spectrum-X), and promising Enterprise AI/robotics (Isaac GR00T, Omniverse) signal massive expansion of Nvidia's Total Addressable Market.
  • Despite near ATHs, Nvidia's valuation is justified by reduced cyclicality and robotics potential; I see a $181 price target based on underestimated growth and sustained AI leadership.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »
Nvidia Corporation building in Taipei, Taiwan.

BING-JHEN HONG/iStock Editorial via Getty Images

Introduction

My investment coverage of Nvidia Corporation (NVDA) spans a couple of years here on Seeking Alpha. The last time I covered the stock was exactly 1 month ago, when I previewed the company's then-upcoming fiscal Q1 FY2026 earnings, seeing

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This article was written by

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Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA 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.

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