Nvidia Deemed Undervalued as Data-Center AI GPU Demand Strains TSMC Capacity
NVDA•Analysts cite surging AI GPU demand and limited TSMC capacity to label Nvidia stock undervalued, projecting sustained revenue growth from data-center deployments. CEO Jensen Huang emphasized AI will create an 'industrial-scale' number of manufacturing jobs in the U.S. and boost demand for Nvidia’s hardware.
1. Analysts Label Nvidia Undervalued
Several research firms have raised their ratings on Nvidia, arguing the stock trades below intrinsic value due to accelerating orders for its AI GPUs and constrained wafer capacity. Consensus forecasts point to double-digit revenue growth in the coming quarters as enterprises expand data-center infrastructure.
2. Supply Constraints at TSMC
Nvidia relies on TSMC’s advanced 5-nanometer processes, where wafer allocation is oversubscribed by AI and smartphone clients. This scarcity has created a backlog of GPU orders, supporting bullish views on pricing power and margin expansion.
3. CEO Jensen Huang on AI Jobs
In a recent public address, Jensen Huang asserted that AI hardware production is spawning an industrial-scale number of factory and data-center jobs. He framed Nvidia’s growth trajectory as central to U.S. reindustrialization efforts and long-term market demand.
