Is NVIDIA Corporation (NVDA) the Best Fundamental Stock to Buy According to Billionaires?

In the ever-evolving landscape of the stock market, one question has been on the minds of many investors: Is NVIDIA Corporation (NVDA) the best fundamental stock to buy according to billionaires? With its recent dip in stock price and the ongoing debate about its future prospects, it's crucial to delve into the factors that make NVIDIA an attractive investment and the challenges it faces.

The Case for NVIDIA

NVIDIA's current valuation presents a compelling argument for investors. The company's P/E ratio has dropped to its lowest level since early 2019, making it one of the most attractively valued stocks in the market. Morningstar, a leading investment research firm, has highlighted that wide-moat stocks like NVIDIA are currently undervalued, suggesting that now might be the perfect time to buy.

One of the key factors contributing to NVIDIA's attractiveness is its dominance in the AI sector. The company's GPUs and software platforms are essential for AI training and inference, making it a critical player in the AI infrastructure market. Major tech giants like Microsoft, Alphabet, and Meta are investing heavily in AI, driving demand for NVIDIA's data center GPUs. This trend is expected to continue, with these companies planning to invest a combined $220 billion in AI infrastructure.

NVIDIA's growth prospects extend beyond AI. The company is also making significant strides in the robotics and autonomous driving sectors. CEO Jensen Huang has estimated a $50 trillion opportunity in AI-powered robotics, and NVIDIA's Isaac and Cosmos platforms are at the forefront of this revolution. In the autonomous driving sector, NVIDIA expects its automotive business to deliver $5 billion in revenue by 2026, up from $1.7 billion in 2025. These growth opportunities position NVIDIA as a leader in multiple high-potential sectors.

The Challenges Ahead

Despite its strong fundamentals, NVIDIA faces several challenges that could impact its long-term growth and stock performance. One of the most significant risks is the ongoing trade war between the U.S. and China. The Trump administration's tariff policies and potential export restrictions could disrupt NVIDIA's supply chain and access to key markets. Additionally, the rollout of cheaper AI solutions by competitors like DeepSeek could erode NVIDIA's market share and margins.

Another challenge is the economic uncertainty caused by high interest rates and tariffs. These factors have spooked investors, contributing to a 30% drop in NVIDIA's stock price since January 2025. While some investors see this as a buying opportunity, others are cautious about the potential for further volatility.

The Billionaire Perspective

So, what do billionaire investors think about NVIDIA's prospects? Ken Fisher, the founder of Fisher Investments, has a significant stake in NVIDIA, with his firm holding $13.21 billion in equity. Fisher has been vocal about his belief that the market's reaction to tariffs is an overreaction and that the current selloff in the U.S. stock market is an opportunity to buy. This sentiment is echoed by other billionaire investors, who see NVIDIA's current valuation as an attractive entry point.

The Verdict

In conclusion, NVIDIA Corporation (NVDA) presents a compelling case as one of the best fundamental stocks to buy according to billionaires. Its dominance in the AI sector, strong growth prospects in robotics and autonomous driving, and attractive valuation make it an attractive investment. However, investors must also consider the challenges posed by trade wars, competition, and economic uncertainty. As always, it's essential to do your own research and consult with a financial advisor before making any investment decisions.