Nvidia Corporation (NASDAQ: NVDA) continues to dominate the AI landscape and investors took notice again on June 25, 2025, as shares surged over 4% to close at an all-time high of $154.31. The stock also set a new intraday high, breaking its previous record close of $149.43 from January 6. This renewed momentum begs the question: Is Nvidia still a bargain or has the rally run its course?
From Chips to AI Ecosystem
While Nvidia rose to fame as the leading designer of graphics processing units (GPUs), it has evolved into a full-stack AI infrastructure powerhouse. From enterprise software to industry-specific platforms in healthcare, automotive, and beyond, Nvidia has positioned itself as indispensable for AI development.
In its Q1 FY26 update, Nvidia disclosed that nearly 100 AI factories twice the number from a year ago are being built using its technology. These next-gen data centers don’t just rely on Nvidia chips they run on NVLink networking, CUDA and NeMo software, and end-to-end systems that create high switching costs for customers.
Governments and hyperscalers across the globe, including the EU, UAE, Taiwan, Saudi Arabia, Microsoft, and Google, are leaning on Nvidia to power sovereign AI infrastructure.
Innovation Engine Still Running Hot
The company is investing far beyond the current AI wave. It’s exploring humanoid robotics, AI agents, and even the intersection of AI and quantum computing, recently announcing a quantum research center in Boston.
And while Nvidia continues to roll out new architectures like Blackwell, it’s doing so while maintaining high margins. Even after a $4.5 billion charge related to China export controls, the company reported gross margins near 60%, and adjusted margins above 70%, signalling financial strength during expansion.
Numbers That Matter
FY25 revenue came in at a staggering $130.5 billion, more than doubling from FY24’s $60.9 billion. Operating income reached $86.79 billion, with operating margins of 67%. In the latest quarter, Nvidia posted $44.06 billion in revenue (up 69.2% YoY) and expects EPS of $0.93 for the upcoming July quarter backed by nine upward revisions.
The company holds $53.7 billion in cash, free cash flow is up 75%, and enterprise value now exceeds $5.48 trillion. It’s hard to find any modern company with such scale, growth, and profitability all in one package.
What About Valuation?
Despite the rally, Nvidia’s stock is now trading at 34x forward earnings, down from 50x earlier in the year. Given its 1,500% return over five years, many expected valuations to remain sky-high. But as the AI market races from $300 billion to a projected $2 trillion, that multiple may still be modest for what Nvidia is building.
Verdict: Still a Bargain?
Nvidia isn’t just selling chips it is laying the digital foundation for the AI-powered world. With unmatched product depth, global partnerships, and an innovation roadmap extending to 2028, Nvidia remains a high-conviction long-term buy.
So yes, even at all-time highs, Nvidia may still be a bargain.
(Source: Company Announcements)
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