Valued at a market cap of over $3 trillion, Nvidia (NVDA) is a semiconductor giant that has delivered market-beating returns to shareholders in the last decade. Despite its outsized gains, analysts and investors remain bullish on the chip stock as Nvidia remains at the center of the artificial intelligence megatrend. 

Moreover, according to recent 13 F filings, billionaires such as Dan Loeb and George Soros have increased or opened new positions in NVDA stock. Let’s see if you should buy the tech stock at its current valuation. Dan Loeb, who manages the hedge fund Third Point, opened a new position in Nvidia stock as of the end of the first quarter. George Soros of Soros Fund Management also opened a new NVDA stock position and purchased 57,753 shares. 

Is the Big Tech Stock a Good Buy Right Now?

Nvidia continues to solidify its position as the driving force behind global AI infrastructure development. The chip maker’s recent announcements highlighted strategic partnerships and technological breakthroughs across multiple sectors.

Nvidia is scaling AI computing capabilities through high-profile collaborations with major cloud providers. Microsoft (MSFT) is deploying tens of thousands of Nvidia GB200 NVL72 rack-scale systems across Azure data centers.

In Saudi Arabia, Nvidia has partnered with HUMAIN to build AI factories with a projected capacity of up to 500 megawatts, powered by several hundred thousand advanced GPUs over five years. The initial phase will deploy an 18,000 NVIDIA GB300 Grace Blackwell AI supercomputer with InfiniBand networking, positioning Saudi Arabia as an emerging AI powerhouse.

Nvidia is also revolutionizing scientific discovery through agentic AI. Microsoft Discovery, unveiled at Build, integrates Nvidia’s ALCHEMI and BioNeMo microservices to accelerate materials science and drug discovery research. In testing, this platform identified a novel data center coolant prototype in under 200 hours instead of months using traditional methods.

For enterprise and consumer markets, Nvidia introduced a reimagined TensorRT for RTX AI PCs that delivers high-performance inference with 8x smaller package size for seamless AI deployment. This technology will be natively supported by Windows ML, providing developers both broad hardware compatibility and state-of-the-art performance.

At COMPUTEX 2025, CEO Jensen Huang emphasized AI as essential infrastructure comparable to electricity and the internet. It introduced NVLink Fusion architecture for hyperscaler customization, announced multiple Blackwell deployments including DGX Spark and DGX Station personal AI supercomputers, and unveiled the NVIDIA AI Data Platform for intelligent storage infrastructure optimized for modern AI workloads.

Nvidia Is Gaining Traction in Quantum Computing

Nvidia continues to expand its technological leadership beyond traditional AI applications. In recent months, the semiconductor heavyweight has also gained traction in verticals such as quantum computing through strategic partnerships and platform development.

In quantum computing, Nvidia is building the foundation for accelerated quantum supercomputers by integrating quantum hardware with state-of-the-art AI systems. The company’s CUDA-Q platform is enabling researchers and institutions worldwide to advance quantum capabilities. 

Taiwan’s National Center for High-Performance Computing recently announced a new ASUS-built supercomputer featuring NVIDIA HGX H200 systems with over 1,700 GPUs, GB200 NVL72 rack-scale systems, and next-generation Blackwell Ultra platforms, all connected via Quantum InfiniBand networking.

Similarly, Japan’s AIST has deployed ABCI-Q, the world’s most powerful quantum-dedicated supercomputer. It integrates over 2,000 NVIDIA H100 GPUs with quantum processors. This system enables hybrid quantum-GPU workloads across multiple qubit modalities, accelerating development in quantum error correction and applications.

On the healthcare front, Nvidia is partnering with Foxconn to develop smart hospital solutions addressing critical healthcare challenges like the projected global shortage of 4.5 million nurses by 2030. Their collaborative nursing robot, Nurabot, helps reduce clinician burnout by automating routine tasks such as medication transport.

Is NVDA Stock Undervalued?

Nvidia’s growth story is far from over as the company is forecast to report free cash flow of $222 billion in fiscal 2030 (ending in January), compared to a free cash flow of $60.7 billion in 2024. If NVDA stock is priced at 25 times forward FCF, it should surge around 70% over the next four years. 

Out of the 44 analysts covering NVDA stock, 37 recommend “Strong Buy,” two recommend “Moderate Buy,” four recommend “Hold,” and one recommends “Strong Sell.” The average target price for Nvidia stock is $166, 25% above the current trading price.