NextFin News - On December 6, 2025, Roth Capital analyst Rohit Kulkarni, ranked among the top 3% on Wall Street, publicly recommended investors to buy Nvidia Corporation (NASDAQ: NVDA) stock. This recommendation is grounded in Nvidia's position as a leading pure-play AI infrastructure provider and its dominant role in the rapidly scaling AI cloud market, which Kulkarni estimates could surpass the traditional Internet cloud. Kulkarni’s analysis emphasized Nvidia's competitive advantages, including its ability to offer superior product-price performance in AI cloud services and its agile scaling capabilities, making the stock highly attractive at current pricing.
The recommendation coincides with Nvidia's continued meteoric revenue growth. The company reported record third-quarter fiscal 2026 revenues of approximately $57 billion, driven by a 62% year-over-year increase. Of this, data center revenue — the core AI business — surged 66% year-over-year to $51.2 billion, representing around 90% of total revenue. Nvidia also raised its Q4 FY26 revenue guidance to roughly $65 billion, signaling sustained momentum fueled by robust AI adoption across cloud and enterprise sectors.
This impressive financial performance further benefited from the recent congressional decision to exclude the restrictive GAIN AI Act from the National Defense Authorization Act. This legislative move alleviated immediate risks of tighter export controls on Nvidia's advanced AI GPUs destined for China, a strategically critical but historically restricted market. Simultaneously, the launch of EY’s Physical AI platform powered by Nvidia’s accelerated computing technology underscores the company’s expanding ecosystem footprint, particularly in emerging AI domains such as robotics, digital twins, and edge AI.
Culminating these developments, Nvidia’s stock price stabilized near $183 with Wall Street consensus reflecting a strong buy rating and an average 12-month price target exceeding $250, implying roughly 35-40% upside from current levels. Institutional investors have demonstrated ongoing confidence, with significant recent stake increases by firms such as Rathbones Group PLC and GS Investments Inc.
Despite this bullish outlook, analysts acknowledge notable risks that include high customer concentration—where four hyperscalers contribute 61% of revenue—and intensifying competition from hyperscaler-designed AI accelerators and emerging Chinese chipmakers like Moore Threads. Moreover, geopolitical uncertainties, especially U.S.-China tech tensions, continue to loom over Nvidia's market access and supply chain stability.
Valuation metrics highlight Nvidia’s premium status, with a trailing price-to-earnings ratio around 45x and a PEG ratio near 0.9, reflecting elevated growth expectations but also valuation volatility. The stock benefits from strong software ecosystem lock-ins via CUDA and strategic investments, such as the $2 billion Synopsys partnership to co-develop AI-driven chip design tools. These create high switching costs and deepen Nvidia’s economic moat beyond the hardware itself.
Looking forward, the company’s forward strategy aims to solidify its comprehensive AI platform offering—spanning GPUs, networking (NVLink), software, and systems—positioning Nvidia not merely as a chip vendor but as an indispensable AI infrastructure leader. This transformational role supports forecasts of Nvidia capturing a dominant share of the expanding AI accelerator spend, underpinning multi-year growth prospects that remain robust despite cyclical and geopolitical headwinds.
The recommendation to buy Nvidia stock thus reflects a confluence of factors: unparalleled growth in AI-enabled data center demand, strategic ecosystem expansion, eased regulatory risks, and strong Wall Street pricing momentum. For investors seeking exposure to the AI infrastructure supercycle under U.S. President Trump’s administration, Nvidia represents a compelling high-conviction play, albeit one accompanied by the inherent challenges of a high-multiple, growth-centric technology stock.
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