
‘Don't Be a Fool,' Says Top Investor About Nvidia Stock
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
For such a large company, its revenues are still growing strong – 69% last quarter – and despite a one-time $4.5 billion hit due to China restrictions, margins were still above 60%.
That resilience has helped turn the tide. While trade tensions and fears of slowing capex spending among the hyperscalers placed some pressure on the company's share price earlier this year, those concerns now appear to be fading fast. NVDA stock is up over 60% since its post-Liberation Day dip in early April – and just today, it notched a new all-time high.
Even so, Nvidia isn't out of the woods. Its dominance has made it a target, and rivals are scrambling to catch up. Whether through competing GPUs or emerging photonic and analog in-memory solutions, challengers are actively trying to erode Nvidia's edge. The question looming over the stock is this: Could these alternatives finally knock the giant off its perch?
Not likely, says top investor James Foord, who is among the top 2% of TipRanks' stock pros. He believes that Nvidia has a 'secret weapon' up its sleeve – one that will help the company maintain its lead in the AI hardware race for years to come.
'Nvidia Corporation's dominance stems from its integrated AI stack and robust software ecosystem, not just its GPUs,' reminds Foord.
In particular, the company's decision to open its CUDA software and NVLink Fusion interconnect to third parties – including Qualcomm and Marvell – could be transformative. This strategic shift, according to Foord, enables Nvidia to become the backbone of the broader AI ecosystem, embedding itself deeply across multiple platforms. The investor likens this to Microsoft's playbook with Windows. Just as becoming the default operating system cemented Microsoft's place atop the computing world, Nvidia could be positioning itself as the de facto OS for AI.
'Creating the dominant OS for computers secured revenues for the company for decades to come, even without the need to succeed in the hardware market,' adds Foord.
While the investor concedes that Nvidia's hardware edge may be narrowing, he argues, 'it would be even more foolish not to acknowledge Nvidia still has a stronghold on the market.'
As the hardware race heats up, Foord thinks investors might be missing what could be the real prize: AI software. That's where he sees the next big wave of growth and profit – and why he remains firmly bullish on NVDA stock, giving it a Strong Buy rating. (To watch Foord's track record, click here)
That's the overall spirit on Wall Street as well. With 35 Buy, 4 Hold, and 1 Sell ratings, NVDA has a Strong Buy consensus rating. Its 12-month average price target of $175.28 has an upside of ~14%. (See NVDA stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Why Did Tilray Stock Pop Today?
Key Points Alliance Global Partners cut its price target on Tilray stock this morning. Investors bid the stock up despite the bad analyst news. It's been seven years since Tilray last earned a profit, and it could be four more years before that happens again. 10 stocks we like better than Tilray Brands › Alliance Global Partners cut its price target on Tilray Brands (NASDAQ: TLRY) stock by 25% this morning, from $1 to just $0.75 per share, as The Fly just reported. You'd probably expect news like that to have an impact on the stock, and it did... but perhaps not the effect that you think. As of 2:05 p.m. ET Tuesday, Tilray stock is up 15.8%. What Alliance Global said about Tilray Investors' reaction to Alliance Global cutting its price target doesn't make a whole lot of sense (to say the least). According to the analyst, Tilray is experiencing "softness" in international sales of cannabis, and in its alcohol sales as well. (Best known as a marijuana stock, Tilray actually gets 25% of its revenue -- and 40% of its gross profit -- from the sale of alcoholic beverages.) This is leading Alliance Global's analysts to cut their forecasts for Tilray's earnings this year, and to cut their price target as well. Tilray stock does, fortunately, cost only a couple of pennies more than the new price target, however, and so Alliance Global gives the stock a neutral rating. Is Tilray stock a buy? Even "neutral" may be generous, however. Tilray hasn't earned a profit since 2018, back when marijuana stocks were still popular among momentum traders. It hasn't generated positive free cash flow (FCF), well, ever. Even optimistic stock market analysts don't see the company turning profitable before 2029 at the earliest, although forecasts do call for positive free cash flow in 2026. Personally, though, given the company's track record I'm going to have to see that happen to believe it. If Tilray does report positive FCF next year, I'll be happy to reconsider the stock. For the time being, however, I can only call Tilray stock a sell. Should you invest $1,000 in Tilray Brands right now? Before you buy stock in Tilray Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Tilray Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy. Why Did Tilray Stock Pop Today? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Trump administration recommends location verification for AI chips
By Stephen Nellis SAN FRANCISCO (Reuters) -U.S. President Donald Trump's administration on Wednesday recommended implementing export controls that would verify the location of advanced artificial intelligence chips, a move that was applauded by U.S. lawmakers from both parties in both houses of Congress. The recommendation was part of a broader AI blueprint released on Wednesday that aimed to boost exports of AI hardware and software to U.S. allies and relax U.S. environmental rules to speed the construction of new AI data centers. But the plan released Wednesday also said the U.S. should continue denying access to advanced U.S. AI chips made by companies like Nvidia and AMD to foreign adversaries. It added the U.S. government should "explore leveraging new and existing location verification features on advanced AI compute to ensure that the chips are not in countries of concern." The recommendation drew support from two lawmakers who previously introduced bills that would require location verification of chips after sale over concerns that they are finding their way to countries such as China, where their export is banned. Key details - such as how the technology would be implemented and how much cost it would add - remain to be worked out, both in the proposed bills and the Trump administration's recommendations. "I was encouraged to see that the recommended export control policy includes location verification mechanisms and aligns closely with our bipartisan Chip Security Act. I look forward to learning more of the technical details and next steps for end-use verification," Representative Bill Foster, an Illinois Democrat who helped introduce a chip-location bill in May, told Reuters. "Senator Cotton was pleased to see verification included in President Trump's AI Action Plan, as it's a vital part of his bipartisan, bicameral Chip Security Act and an important tool to keep advanced American technology out of the hands of Communist China," said Patrick McCann, a spokesperson for Senator Tom Cotton, an Arkansas Republican who introduced a similar bill in the U.S. Senate.


Skift
an hour ago
- Skift
Accor Adds Its First Las Vegas Resort
The DJIA jumped 508 points while Nasdaq was up 127, the S&P 500 rose 49 points, and the 10-year treasury yield was up .05 to 4.39%. Lodging stocks were mostly higher, led by the timeshare stocks as investors reacted positively to Travel + Leisure's earnings, sending the stock up 7% to a new 52-week high. HGV also hit a new high, up 5% and VAC was up 4% on the day. HLT, the other one who reported earnings, saw its stock go down -3% today. STR reported U.S. lodging data for the week ended 7/19. U.S. hotel RevPAR was down -3.3% with occupancy down -2.6% to lead the decline. Group RevPAR was down -4.6%. Hilton and Travel + Leisure kicked off the industry's earnings season. HLT beat estimates, but their report was described as mixed by many for various reasons. The beat was viewed as being from items like owned hotel income and other revenues and expenses, while Management Fees, Incentive managem