Nvidia (NASDAQ:NVDA) has been one of many best-performing shares globally over the previous 18 months. The chip producer’s shares are up almost 7x over the interval. This extraordinary progress can actually flip some buyers off, making them imagine it’s overvalued. Nevertheless, it’s price remembering that momentum can really be the most effective indicators of ahead inventory efficiency, particularly if the corporate has a observe report of beating expectations.Personally, I stay bullish on NVDA inventory, not simply due to momentum however as a result of the corporate is so central to the AI revolution, which has solely simply begun.The AI KingpinNvidia, as an organization, is on the very coronary heart of the AI revolution on account of its graphics processing models (GPUs), which possess the capabilities required for large AI and huge language fashions. The models have been initially constructed for the gaming sector, however GPUs are additionally excellent for AI’s large information processing wants.In contrast to central processing models (CPUs) that deal with duties one after the other, GPUs excel at parallel processing, permitting them to tackle a number of duties concurrently. With out this know-how, the step ahead we’ve seen in AI, which incorporates developments in facial recognition know-how and self-driving automobiles, wouldn’t be potential.Nvidia’s dominance stems from the structure of its GPU. In contrast to CPUs with a number of cores, Nvidia packs an enormous variety of cores onto a single chip. In flip, this enables for prime processing energy inside a smaller area, and that is vastly necessary for environment friendly AI processing. Furthermore, Nvidia has centered on high-bandwidth reminiscence, which permits these cores to entry information quickly, additional accelerating AI computations. As such, Nvidia has earned a big edge within the AI {hardware} race.Nevertheless, within the AI world, it’s not nearly {hardware}. Nvidia’s CUDA software program gives direct entry to the GPU’s digital directions. This software program ecosystem empowers builders to construct and refine AI initiatives and has made Nvidia a one-stop store for all issues AI.Story continuesIsn’t Nvidia Actually Costly?Nvidia inventory is dear in that it’s turning into much less inexpensive for a lot of buyers. Buying and selling round $900 a share, some buyers could wrestle to buy a single Nvidia share as a part of a various portfolio of holdings. Nevertheless, from a valuation perspective, I don’t assume Nvidia inventory is dear or overpriced. In actual fact, it might nonetheless signify good worth.Nvidia presently trades at 35.4x ahead earnings, making it dearer than the S&P 500 (SPX), however it’s not at all too costly for the tech sector. Furthermore, the corporate is anticipated to proceed delivering stellar progress all through the medium time period. In actual fact, Nvidia’s earnings are forecasted to develop by 34.78% yearly all through the medium time period.Because of this Nvidia’s all-important PEG ratio is 1.02. Whereas 1.0 could also be thought of the benchmark for truthful worth, I nonetheless assume this represents good worth, noting long-term developments within the AI trade and the market’s bullishness on U.S. tech.In flip, which means Nvidia is buying and selling at 29.77x earnings for 2026, 25.26x earnings for 2027, and 21.49x earnings for 2028. Furthermore, it’s price recognizing that Nvidia simply retains on beating analysts’ most bullish forecasts. That’s at all times an excellent signal, and possibly it may proceed to beat expectations, going ahead.Is NVDA Inventory a Purchase, In response to Analysts?Because of its enabling place within the AI revolution and its engaging valuation metrics, Nvidia inventory earns a Robust Purchase from analysts. At present, Nvidia has 39 Buys, two Maintain scores, and nil Promote scores. The typical Nvidia inventory goal worth is $913.74, inferring 1.1% upside potential. The best share worth goal is $1,200, and the bottom share worth goal is $608.40.The Backside LineNvidia has been central to the AI revolution, however there are two necessary issues to contemplate shifting ahead: Nvidia’s aggressive benefit within the all-important generative AI market and the truth that the AI revolution has solely simply begun.Over the previous 18 months, Nvidia has discovered itself with a formidable moat, which it has efficiently constructed upon. Different firms, together with Intel (NASDAQ:INTC), have eyes on Nvidia’s crown, however it’s not clear how they are going to catch up. The Santa Clara-based agency’s new H200 chipset is the must-have for generative AI and huge language fashions. The H200 is considered between 1.4 and 1.9 occasions quicker than the H100 with regards to massive language mannequin inference. That’s a formidable bounce in only one yr.Furthermore, the market is rising and has the potential to develop a lot quicker. SoftBank’s (OTC:SFTBY) Masayoshi Son is contemplating a $100 billion enterprise within the AI chip area, and OpenAI’s Sam Altman is reportedly searching for $7 trillion for a string of AI chip factories that will reply to burgeoning demand and restructure the world’s semiconductor sector.Given the near-term momentum within the sector, the truth that demand for GPUs nonetheless outstrips provide, and the truth that we actually are simply firstly of the AI revolution, I stay bullish on Nvidia.Disclosure