The Market Is Mispricing Nvidia's AI Bull Case Again (Rating Upgrade)

Summary

• Nvidia remains the dominant force as the primary AI infrastructure beneficiary, posting stellar Q3 results and raising guidance above Wall Street expectations. Yet, the market was surprisingly disappointed.
• NVDA's full ecosystem advantage, expanding into networking and software, cements its moat despite market concerns over AI circular financing and valuation.
• The AI infrastructure buildout, projected to reach $3-4 trillion by 2030, positions NVDA well to raise its free cash flow margins to almost 50% by FY2028.
• NVDA's valuation has dropped to a level that corresponded to previous accumulation zones that saw dip buyers returning previous. Will this time be any different?
• I ask AI investors to put aside AI bubble fears right now, as Nvidia's bull case is far from imploding, allowing long-term buyers to capitalize on the irrational fear-driven selloff.
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