Nvidia has built strategic stakes across the AI supply chain, including investments in CoreWeave, Nebius Group, Lumentum, Coherent, Marvell, Synopsys, and a significant stake in Intel.

At the GTC event, Nvidia disclosed a backlog of more than $500 billion for Blackwell and Vera Rubin AI chips through year-end 2026, signaling strong demand visibility.

Hedge funds have been selling aggressively and using ETF shorting, signaling broad bearish sentiment despite Nvidia’s strong fundamentals.

Despite a bearish mood among hedge funds, Nvidia remains financially robust with strong future demand signals, suggesting a patient, long-term investing approach.

CEO Jensen Huang says Nvidia could exceed the $1 trillion milestone in AI chip revenue through 2027, underscoring its dominant position in the AI ecosystem.

Nvidia has underperformed in 2026 despite record results and optimistic forecasts, with headwinds from geopolitics, inflation, and questions about AI adoption weighing on the stock.

In its fiscal Q4 2026 report, Nvidia delivered revenue of $68 billion (up 73% year over year, 20% sequentially), adjusted EPS of $1.62 (up 82%), and a gross margin of 71.1%.

valuation remains rich but is attractive relative to historical levels, with a PEG of 0.54 and a forward multiple around 21x.

Long-term investors should ignore near-term noise; the author, a proponent of patient holding, allocates about 15% of their portfolio to Nvidia and expects a future stock price rise.