Chipmaker and AI prodigy Nvidia (NASDAQ:NVDA) continues its unstoppable upward journey, having greater than tripled in worth in 2023 and up about 78% year-to-date. The latest This fall beat was spectacular and drove NVDA to its all-time highs. Being on the helm of the AI revolution, my bullish stance on NVDA stays. I’m assured in its long-term potential for progress, pushed by the substitute intelligence (AI) growth and its comparatively favorable valuation. Therefore, I’ll purchase the inventory at present ranges.NVDA Posts Blowout This fall Earnings But AgainNow the third largest firm on the planet, Nvidia posted yet one more blowout This fall consequence on February 21, pushed by accelerated computing and generative AI momentum. Adjusted earnings of $5.16 per share handily beat the analysts’ estimates of $4.59 per share. Additionally, the determine got here in a lot increased (+486%) than the Fiscal This fall-2023 (ended January 2023) determine of $0.88 per share.Impressively, This fall income jumped 265% year-over-year to $22.1 billion, surpassing the consensus estimate of $20.5 billion. On high of that, its adjusted gross margin expanded 10.6 share factors to 76.7% from 66.1% a yr in the past.Importantly, NVDA’s crown-jewel section, Knowledge Heart revenues, greater than trebled year-over-year to $47.5 billion in Fiscal 2024. This fall revenues for the section additionally noticed exceptional progress, rising by 409% year-over-year to $18.4 billion.As anticipated, revenues declined in China because of the U.S. export management restrictions. In the course of the earnings name, administration affirmed that China represented solely a mid-single-digit share of Knowledge Heart income in This fall versus 20-25% on a mean foundation over the previous couple of quarters.Wanting forward, the Q1 steerage seems promising, with revenues anticipated to hover round $24 billion. Adjusted gross margins are forecasted to be round 77%.Exuberating nice optimism for the longer term, CEO Jensen Huang commented in the course of the name, “We’re initially of two industry-wide transitions and each of them are industry-wide. The primary one is a transition from normal to accelerated computing… [and] a second industry-wide transition known as generative AI.”Story continuesNVDA’s Lengthy-Time period Trajectory Stays ImpressiveNVDA is Wall Avenue’s favourite for cause. Over the past six years, Nvidia’s revenues have skyrocketed by almost 9x, from $6.91 billion in FY2017 to $60.9 billion in FY2024 (see beneath). What’s much more applaudable is that its earnings have grown by 18x from $1.67 billion to $29.8 billion over the identical interval, because of its rising revenue margins. This information instills in me a profound sense of confidence in NVDA’s robust enterprise fundamentals and its anticipated progress trajectory, pushed by AI.In response to Wall Avenue estimates, NVDA is projected to attain a web revenue of $64.3 billion in Fiscal 2025, doubling from the $32.3 billion reported within the not too long ago concluded Fiscal 2024. Moreover, revenues are anticipated to surpass the monumental $100 billion milestone. These exceptional progress expectations present compelling causes to proceed investing on this AI large, particularly contemplating that the expansion narrative of disruptive generative AI is simply simply starting.NVDA May Possible Go for a Inventory SplitInching nearer to the $1,000 milestone worth mark, many Wall Avenue analysts opine {that a} inventory cut up may happen within the subsequent yr or so. NVDA underwent a 4:1 inventory cut up in Could 2021, when it was priced at roughly $600. This transfer facilitated simpler entry for smaller retail traders to buy the inventory. Whereas a inventory cut up doesn’t inherently alter the corporate’s valuation or fundamentals, it does broaden its investor base by attracting smaller traders.Different outstanding corporations which have opted for inventory splits embrace EV maker Tesla (NASDAQ:TSLA) (in 2020 and 2022) and Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL). Due to this fact, it’s probably that NVDA might take into account one other inventory cut up within the close to future.NVDA Valuation Nonetheless Isn’t Costly, Given Its Earnings ProwessHaving overtaken Amazon by market capitalization and on the verge of eclipsing Apple’s market cap, many traders are hesitant to buy NVDA inventory amid its exceptional rally and issues about overvaluation.Quite the opposite, nevertheless, NVDA inventory just isn’t costly in any respect. At the moment, it’s buying and selling at a pretty ahead P/E ratio of 36.9x (primarily based on FY2025 earnings expectations). That is comparatively cheaper than the multiples of its peer group. For example, U.S.-based semiconductor firm Superior Micro Units (NASDAQ:AMD) is buying and selling at a ahead P/E of 53.4x.Moreover, its present valuation displays a reduction from its five-year common of 46x. These are engaging low cost ranges and certain current an awesome shopping for alternative, given the supernormal progress potential for the AI market titan NVDA.Is NVDA Inventory a Purchase, In response to Analysts?NVDA stands as an invincible pressure, a inventory that garners widespread consideration. With 39 Buys and two Maintain scores from analysts within the final three months, the consensus score is unmistakably a Sturdy Purchase. Nonetheless, the common Nvidia inventory goal worth of $909.49 means that the shares will return 3.4% over the subsequent yr.Curiously, the common goal worth has been rising extremely as analysts attempt to match NVDA’s steady record-breaking highs month after month. It has elevated from $661 simply three months in the past to $909.Conclusion: Take into account Shopping for NVDA for Its Lengthy-Time period AI PotentialNVDA inventory is poised to soar to unprecedented heights, propelled by the extraordinary progress expectations inside the AI area. As an {industry} frontrunner, NVDA maintains a considerable lead over its rivals, boasting an nearly monopolistic place with an roughly 80% market share in AI chips. This dominant place ensures a strong moat and solidifies its grip on the flourishing AI panorama.The insatiable demand for all issues AI far outpaces the obtainable provide, underscoring the potential for accelerated computing and generative AI adoption throughout varied industries and areas. This development is anticipated to be a major driver of income and earnings progress for NVDA within the years forward.With NVDA’s extremely anticipated dwell GTC convention scheduled for March 18-21, my bullish outlook on the corporate stays steadfast, prompting me to buy shares at their present ranges.Disclosure