Nvidia (NVDA) has seen significant value creation in recent years, driven by investments in AI resulting in revenue, margin, and cash flow growth. With a market valuation of $4.6 trillion, the company is well-positioned for future growth, especially in AI-related infrastructure spending. Chinese regulators have granted approval for Alibaba, Tencent, and ByteDance to prepare for Nvidia H200 orders, with potential orders of over 200,000 units each. Nvidia CEO Jensen Huang has indicated strong demand for the H200 chips among Chinese customers, supporting overall growth. Additionally, the company plays a critical role in AI growth and reported strong financials for Q3 fiscal 2026.

Nvidia’s growth momentum is structural and not cyclical, with expectations of demand driven by accelerated computing and powerful AI models. With partnerships with major companies and opportunities in sectors like robotics and life sciences, Nvidia is poised for further growth. The company’s robust financials, strong ratings from analysts, and potential upside in stock price make it an attractive investment option. Despite a trailing P/E ratio of 48, Nvidia’s expected earnings growth suggests that the stock is not overvalued.

Read more at Yahoo Finance: Chinese Tech Giants Receive the OK to ‘Prep’ for H200 Orders. How Should Nvidia Stock Investors Play the Return to China Thesis?