Nvidia (NASDAQ: NVDA) has shown significant resilience in the AI sector, recovering from a 37% stock plunge earlier this year. The company reported record revenues of $44.1 billion for its fiscal 2026 first quarter, reflecting a 69% year-over-year growth, and has projected $45 billion in revenue for the second quarter, indicating a 50% growth.
Nvidia dominates the GPU market, controlling approximately 92% of the data center GPU space. Their expertise in AI has positioned them as a leader, with estimates suggesting the generative AI market could reach between $2.6 trillion and $4.4 trillion annually in the coming years.
The stock currently trades at around 33 times forward earnings, which is deemed attractive given its expected profit growth, alongside a price/earnings-to-growth (PEG) ratio of 0.56, indicating potential undervaluation.
