Nvidia (NASDAQ: NVDA) hasn’t been its normal self lately. Over the past few years, Nvidia has always been a top performer. However, it hasn’t lived up to those expectations so far in 2026. The stock is down about 5% this year and hasn’t really done anything since August 2025. Given the explosive returns Nvidia has provided in the past, this underperformance is disappointing for many investors.
But I think investors need to look at it from a different point of view. Nvidia hasn’t been dormant over the past eight months. Its business has been thriving, and demand for AI computing products has risen. So, I think investors need to look at this period of lackluster performance as a buying opportunity, rather than a sign of caution.
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Today’s buying opportunity is incredible, and I think investors could make an argument that Nvidia is one of the best buys in the stock market, but is it the best? Let’s take a look.
Nvidia’s success is directly tied to the AI computing build-out. AI hyperscalers are spending billions of dollars on AI computing power, and each year since 2023, they have expanded their spending. 2026 is no exception, as the AI hyperscalers plan to spend a record amount of money on capital expenditures in 2026. Nvidia is also seeing its revenue reaccelerate due to rising demand. During its last quarter, revenue rose 73% year over year, and in the first quarter, they expect 77% growth. While management didn’t give second-quarter guidance, the average Wall Street analyst projects 85% revenue growth in Q2.
If that’s the only piece of information you had about Nvidia’s stock, you’d likely assume that the stock would be hitting new all-time highs and performing incredibly well, but it’s not.
This disconnect is why Nvidia is such an excellent buying opportunity. The Nvidia investment thesis is playing out as perfectly as it can, yet the market is refusing to give it the benefit of the doubt. I think this sets up the opportunity for Nvidia to deliver explosive returns throughout the rest of the year.
Currently, Nvidia trades for a mere 21.5 times forward earnings — only slightly more expensive than the S&P 500 (SNPINDEX: ^GSPC) at 20.3 times forward earnings.
This modest ratio suggests that the market expects 2026 to be a strong year, with 2027 to be a year of market-matching performance. However, Wall Street analysts expect Nvidia to deliver 30% revenue growth, and if you’ve listened to any of the AI hyperscalers talk, you will still see massive spending through at least 2030.
