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Is Nvidia Stock a Bargain?


In a year where artificial intelligence (AI) continues dominating headlines and enterprise spending, one might expect the sector's undisputed leader to be posting spectacular gains. Instead, Nvidia (NASDAQ: NVDA) has delivered a surprisingly modest 2.3% return year to date as of this writing, barely outpacing the S&P 500's rather modest 0.32% advance in 2025. For a company that became synonymous with the AI boom, this restrained performance raises an intriguing question for growth investors.

The disconnect becomes even more puzzling when examining Nvidia's recent financial performance. The chipmaker just reported first-quarter fiscal 2026 results that would make most technology executives envious, with revenue surging 69% year over year to $44.1 billion and guidance pointing toward continued robust growth. Yet the market's tepid response suggests either excessive caution or a compelling buying opportunity.

Image source: Getty Images.

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Source Fool.com

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