Whenever Wall Street icon David Tepper reduces a significant holding such as Nvidia (NVDA), the market is abuzz. A recent 13F filing indicates that Tepper’s Appaloosa Management significantly reduced its Nvidia position in Q1 2025, diverting funds to the likes of Uber Technologies (UBER). As of the end of the first quarter, Appaloosa reduced its stake from 680,000 shares to 300,000, marking a 56% reduction.

Tepper’s decision might raise eyebrows, but Nvidia is still at the forefront of the AI revolution. Even in the rough opening to 2025, Nvidia continues to serve as a leader in artificial intelligence infrastructure, fueling next-generation models, data centers, and autonomous systems worldwide. 

At the same time, more general concerns, like U.S. and China export controls on chips, geopolitics, and rising Treasury yields, have provided short-term uncertainty. However, with a 73% year-over-year increase in data center sales and indications of leveling valuations, Nvidia still has an attractive long-term narrative. 

About Nvidia Stock

Nvidia (NVDA) headquartered in Santa Clara, California, is the world leader in GPU and AI computing. Its market cap is more than $3.29 trillion. Nvidia designs graphics processing units for gaming, professional visualisation, and data center and other AI workloads. 

Nvidia is increasingly characterized by its platform-level leadership in accelerated computing and full-stack AI infrastructure. Nvidia shares have traded between $86.62 and $153.13 over the past 52 weeks, reflecting heavy swings. As of May 29, the stock is up 22% over the past year. Although it is up 3.4% YTD after a sharp early year pullback, it has rebounded strongly in recent weeks, gaining 5.4% in the last five trading days alone, outpacing the broader S&P 500 Index ($SPX).

Nvidia trades at a forward price-earnings ratio of 34.23x and trailing P/E of 47.38x, indicating premium valuations. Its price-sales ratio is an astounding 25.39x and EV/EBITDA is 39.5x, which points to lofty expectations. Yet its PEG ratio of 1.39x indicates that valuation is still reasonable in comparison to projected growth, particularly with 36% EPS growth projected in fiscal 2026. 

Nvidia has a minimal dividend payment, with a current yield of close to 0.03%, and is not an income stock. Its allocation of funds is mainly to R&D and strategic investments in partners within the ecosystem. 

Nvidia Took a $4.5 Billion Hit, Yet Still Beat the Street 

Nvidia reported fiscal 2026 first-quarter revenue of $44.1 billion, including a new record of $39.1 billion in its data center segment, a 73% increase from last year. 

Despite strong top-line growth, Nvidia absorbed a $4.5 billion inventory charge related to new U.S. export license restrictions on its H20 products in China. The restrictions, announced April 9, prevented Nvidia from recognizing $2.5 billion in additional H20 sales in the quarter. Even so, H20 products contributed $4.6 billion in sales before the restrictions took effect.

Excluding the H20 charge, non-GAAP gross margin would have reached 71.3%. Including the charge, Nvidia’s GAAP and non-GAAP gross margins came in at 60.5% and 61%, respectively. GAAP EPS was $0.76, and non-GAAP EPS was $0.81. Adjusted for the H20 impact, non-GAAP EPS would have been $0.96, well above estimates.

Looking ahead, Nvidia guided Q2 FY2026 revenue to $45 billion, plus or minus 2%, with gross margins recovering to 72% non-GAAP. Management reiterated its goal to push gross margins into the mid-70% range later this year, even as H20 revenue loss is expected to be around $8 billion in Q2.

What Analysts Think of Nvidia Stock 

Wall Street is still optimistic on Nvidia as 44 analysts have a consensus of “Strong Buy” rating on the stock. 36 of the analysts have issued “Strong Buy” ratings, three have “Moderate Buy,” four have “Hold,” and one “Sell.”

It is worth noticing that the highest target is at $220, implying 59% upside potential.