Nvidia's Autumn Rebound: Three Reasons to Buy Now

Nvidia's dominance in the AI revolution has been evident for years, but its stock performance this year hasn't quite matched the market's expectations. Despite a 19% rise in 2026, Nvidia's growth has lagged behind smaller AI players and memory stocks that have benefited from its coattails. However, with summer giving way to autumn, now may be an ideal time to invest in Nvidia.

One reason for optimism is the acceleration of Nvidia's growth. In recent quarters, revenue growth has picked up pace: Q2 FY 2026 saw a 56% increase, followed by 63%, 73%, and 85% in subsequent quarters. While this rate may not be sustainable, it suggests that Nvidia continues to perform strongly.

Another factor working in Nvidia's favor is its potential entry into the Chinese market. The company has been excluded from sales in China due to trade restrictions, but CEO Jensen Huang's upcoming visit to the White House could signal a breakthrough. While previous state dinners have not led to easing of trade restrictions, an agreement with China would undoubtedly boost revenue.

Nvidia's valuation is also becoming increasingly attractive. With analysts expecting earnings per share of $9.31 and $15.68 for the current fiscal year and next year, respectively, the stock trades at just 14 times next year's projected earnings. If recent momentum continues, this multiple could drop even further.

However, not all is rosy. Growing concerns over data center build-outs and AI safety could slow or derail the revolution. Additionally, Nvidia's current margins may not be sustainable in the long term. Nevertheless, with a potential breakthrough in China and an attractive valuation, now may be the time to consider investing in Nvidia.