Value Play Emerges in Nvidia Amid Strong AI Infrastructure Spending Trends

Nvidia (NVDA) is surprisingly emerging as a value play in the market, with its stock price 17.54% below its 52-week high.

This shift could benefit traders considering the Direxion Daily NVDA Bull 2X Shares (NVDU A-), which seeks to deliver 200% of the daily performance of Nvidia's semiconductor business.

Nvidia is not a traditional value name, but rather a growth-at-a-reasonable-price (GARP) idea, according to Morningstar's Brian Colello.

Colello noted that Nvidia's $280 fair value estimate implies price/adjusted earnings multiples of 30 times for fiscal 2027 and 20 times for fiscal 2028.

The AI infrastructure spending trend is expected to remain strong, with hyperscalers potentially spending as much as $700 billion this year, and global AI infrastructure spending exceeding that figure in the coming years.