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Last month, President Donald Trump announced a major artificial intelligence initiative, partnering with tech giants OpenAI, Nvidia (NVDA), Oracle (ORCL), and SoftBank (SFTBY) to invest up to $500 billion in domestic AI infrastructure over the next four years.
The “Stargate” project was unveiled at the White House alongside SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison. The executives committed an initial $100 billion investment, with Son serving as chairman of the new venture.
“What we want to do is we want to keep it in this country,” Trump said, highlighting China's growing competition in AI. The initiative’s first project will construct data centers in Texas, with work already underway.
According to a Bloomberg report, the Stargate Project is expected to require approximately 64,000 Nvidia GPUs by 2026, with infrastructure being developed across multiple U.S. locations. The cost of a single GB200 GPU is around $60,000. As a result, Nvidia is projected to generate nearly $4 billion in sales over the next two years solely from the Stargate Project. Furthermore, these GPU estimates pertain to a single data center, while the Stargate Project may need about 10 data centers.
The Bull Case for Nvidia Stock
Nvidia is at the epicenter of the artificial intelligence megatrend, driving its share prices higher by 410% in the last three years. However, the ongoing market volatility has dragged the tech stock lower by 25% from all-time highs, which allows you to buy the dip.
Nvidia announced record-breaking financial results for its fourth quarter and fiscal year 2025, with quarterly revenue reaching $39.3 billion, up 78% year-over-year and 12% sequentially.
The Data Center segment was the primary growth driver, posting revenue of $115.2 billion in fiscal 2025, up 142% from the previous year. Q4 Data Center revenue hit a record $35.6 billion, increasing 93% year-over-year and 16% sequentially, fueled by strong demand for accelerated computing platforms used in AI applications.
The Blackwell architecture, NVIDIA’s newest AI computing platform, generated $11 billion in revenue in its first quarter on the market — the fastest product ramp in the company’s history. Notably, approximately 50% of Data Center revenue came from large cloud service providers. The earnings call also highlighted NVIDIA’s involvement in the $500 billion Stargate Project, with the company serving as a key technology partner.
While Gaming revenue grew 9% for the full fiscal year, it declined 11% year-over-year and 22% sequentially in the fourth quarter due to supply constraints affecting both Blackwell and Ada GPUs. Professional Visualization revenue increased 21% for the fiscal year, while Automotive revenue jumped 55%.
Nvidia reported GAAP earnings per diluted share of $0.89 for the quarter, up 82% year-over-year, and $2.94 for the fiscal year, up 147%. Nvidia’s cash, cash equivalents, and marketable securities reached $43.2 billion, up from $26 billion a year ago.
Looking ahead, Nvidia expects first-quarter fiscal 2026 revenue to reach $43 billion, plus or minus 2%, with continued strong demand for its AI computing platforms as the chip maker positions itself at the forefront of the expanding AI industry.
Is Nvidia Stock Undervalued?
According to consensus price targets, Nvidia is forecast to expand adjusted earnings per share from $2.99 per share in fiscal 2025 to $4.50 per share in 2026 and $5.72 per share in 2027. Comparatively, free cash flow is forecast to improve from $60.7 billion in 2025 to $98.9 billion in 2026 and $127.6 billion in 2027.
Out of the 44 analysts covering Nvidia stock, 38 recommend “Strong Buy,” two recommend “Moderate Buy,” and four recommend “Hold.” The average target price for NVDA stock is $177.59, indicating upside potential of over 50% from current levels.
