Why I’m Doubling Down on Nvidia Stock Hand Over Fist
Nvidia shares just dropped over 8% in a week while AI slowdown headlines pile up, and that is exactly when one investor keeps hitting the buy button with more conviction than ever.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
I keep hitting the buy button on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and after the pullback this month I hit it again. Shares are down 8.32% in a week while headlines warn about an AI slowdown, and that is exactly when I want to add to the one company sitting at the center of every serious AI build being planned through 2030.
The thesis reduces to one line from the CEO. “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” Every hyperscaler capex plan, every sovereign AI factory, every frontier lab funding round eventually turns into GPU orders, and one architecture stack keeps absorbing the demand.
Numbers That Keep Me Buying
Q2 FY2027 revenue printed at $96.22B, up 105.8% YoY, with non-GAAP EPS of 2.22, the fifth straight quarter beating consensus. Data Center alone did $89.02B, up 117% YoY, and Data Center Networking grew 138%. Non-GAAP gross margin came in at 75.0%. Operating margin ran 60.4%. ROE sits at 101.5%. I have never found another company at this scale producing those three margin numbers in the same quarter.
Then the guide. Management called for $108.0B in Q3 revenue and told the street to expect fiscal 2028 growth of approximately 70%, describing it as a supply-constrained outlook. Analyst EPS for FY2028 has moved to 15.5675 from 12.6718 90 days ago, with 39 upward revisions in the trailing week and zero cuts. Estimates are chasing the business.
The balance sheet lets me sleep. Debt to equity is 0.073. Interest coverage is 503x. Free cash flow ran $21.34B in the quarter, and the company returned $26.0B to shareholders in Q2 through buybacks and the $0.25 quarterly dividend, with $99.0B still authorized. That is how a compounder behaves.
Why Not AMD or Broadcom
Advanced Micro Devices (NASDAQ:AMD) builds real GPUs, and Broadcom (NASDAQ:AVGO) is a strong cash generator on custom silicon and networking. I respect both. My money keeps flowing to NVIDIA because I want the platform that is absorbing the orders. NVIDIA is running a 75.0% non-GAAP gross margin and 60.4% operating margin on almost $100B in quarterly revenue, generating 92.2% ROIC. Vera Rubin already has purchase orders from every major hyperscaler, AI cloud, and system OEM, and the CPU line alone is expected to more than double in fiscal 28. That is a lock I want to own.
Risk I Take Seriously
Circular financing. NVIDIA is guaranteeing $108.5B for AI cloud partners, sitting on $279B in supply obligations, and has invested nearly 50 billion in frontier AI labs that then buy its chips. If AI monetization stalls, that chain wobbles. I read the AI apocalypse coverage this morning. My conviction holds because hyperscaler capex is tracking 1.3 trillion in 2027, cloud backlog is greater than 2 trillion, and management says the compute is fungible and redeployable. Only outright demand destruction breaks this thesis, and I do not see it in the data.
What Keeps the Buy Button Live
A trailing P/E near 42 and a forward P/E of 24 on a business growing revenue past 100% YoY, with 75% gross margins and a supply-capped 70% FY2028 outlook, looks like a bargain to me. I will keep buying every week the market gives me a reason to.
Contact [email protected] for any questions or corrections.
Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
