AI Fears Are Reaching Fever Pitch But I’m Not Slowing Down My Nvidia Accumulation
Every AI doom headline that crosses my feed makes me want to buy more Nvidia, not less, and the company's own numbers explain exactly why the fear and the fundamentals are pointing in opposite directions.
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I bought more NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) shares last week, and I will probably buy more this week. AI doom chatter fills every feed I open. My cost basis keeps climbing anyway, because the numbers coming out of this company describe a business that has become the electrical grid of a new computing era, and I want to own as much of that grid as I can before retirement.
Compute Is Revenue, and the Revenue Is Compounding
Q2 fiscal 2027 landed with revenue of $96.22B, up 105.85% year over year, clearing consensus by 4.51%. Non-GAAP EPS came in at 2.22 against a 2.0887 estimate, the fifth consecutive beat. Data Center alone printed $89.02B, up 117%, with Networking inside it up 138%. Management guides Q3 to $108.0B plus or minus 2%, and that guide excludes any China Data Center compute.
The margin structure is the second reason my finger keeps hovering over the buy. Net margin sits at 55.60%, ROE at 101.5%, ROIC at 92.2%. Debt-to-equity is 0.073 with interest coverage of 503x. This is a fortress that prints cash: $21.34B of free cash flow in one quarter and $96.58B across fiscal 2026. Management returned approximately $26.0 billion to shareholders in Q2 through buybacks and the $0.25 dividend, with $99B still authorized.
Why Not AMD or Broadcom
The reflex alternatives are Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO). I pass on both every time. NVIDIA generated $89.02B in Data Center revenue in a single quarter. On the August 26 call, management said NVIDIA is “the only platform that runs every frontier model” and that competing custom XPUs are “often inference-specific and tied to one cloud or service”. AMD ships credible GPUs. AVGO ships credible custom silicon. The full-stack AI factory platform that turns hyperscaler capex into a repeat purchase order lives at NVIDIA, and CUDA is the software moat around it.
Risk I Actually Lose Sleep Over
Supply commitments ballooned to $279B, mostly memory tied to Vera Rubin. Guarantee obligations sit at $108.5B for AI cloud partners. DSO stretched from 45 to 60 days on extended payment terms for large investment-grade customers. If AI capex slows, NVIDIA is on the hook for a mountain of memory and an aging receivables book. Management calls the compute “fungible and durable”, redeployable to other customers. That is the bet I am accepting.
What keeps me pressing buy: capex from the top five hyperscalers is guided to “nearly 800 billion in 2026” and “1.3 trillion in 2027”, cloud backlog is “greater than 2 trillion”, and NVIDIA has supply for only about 70% of stated demand, a constraint expected to persist through fiscal 2028. All of that spend has to be powered, cooled, and networked by somebody, and we pulled seven of those non-chip beneficiaries into a free report. AI venture funding reached $400 billion in the first half of 2026, with roughly 70% flowing to compute. Analysts have raised the FY2028 EPS average from 12.6737 ninety days ago to 15.6826, with 42 upward revisions and 0 downward revisions in the trailing 30 days.
Forward Conviction
NVIDIA trades at a P/E of 46 on trailing earnings, which sounds rich until you register that net income grew 125.9% year over year, management sees revenue growing “approximately 70% in fiscal 2028”, and the balance sheet is effectively net cash. This is the rare position where fundamentals compound faster than the multiple can expand, and I want more of it every month my paycheck clears.
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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.
