'Skeptics Are Wrong': Top Investor Says Nvidia Stock Looks Stronger With Meta's AI Push

Nvidia (NASDAQ:NVDA) shares have been treading water this year as investors debate whether the unprecedented scale of AI infrastructure spending can truly justify the company's premium valuation and sustain its blistering growth trajectory. While hyperscaler capital expenditures continue to underpin strong demand for Nvidia's GPUs, sentiment has cooled amid "AI bubble" concerns and broader tech-market volatility.

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Yet, that caution stands in contrast to what the numbers are actually showing. Nvidia's top- and bottom-line performance remains formidable, and management has offered no indication that momentum is about to fade. In fact, the latest quarterly reports from the hyperscalers delivered confirmation that AI-related spending is still ramping higher. In other words, while the market questions the durability of the cycle, the companies writing the checks are accelerating their investments.

Still, several hyperscalers saw their own stocks slide after revealing just how big their capex plans have become. Investors are clearly nervous about margins and free cash flow taking a hit in the short term.

So, if Big Tech is getting punished for spending aggressively on AI, could Nvidia be next?

One top investor, known by the pseudonym The Techie, doesn't see dark clouds gathering on the horizon. Moreover, the 5-star investor takes further encouragement from another recent development.

"The multi-year Meta partnership, including large-scale Grace CPU deployment, solidifies NVDA's full-stack utility and entrenches it in Meta's $135 billion capex roadmap," explains the 5-star investor, who is among the top 4% of stock pros covered by TipRanks.

Whereas other hyperscalers are seeking to decrease their dependency on Nvidia by building their own chips, Techie argues that Meta is doing the exact opposite by committing to deploy "millions of Nvidia processors."

It's more than just the hardware, adds the investor, as the two companies will be in deep collaboration to design the data center architecture. That will likely make Meta and its deep pockets highly reliant on Nvidia for years to come.

With not even a "hint of moderation" in AI infrastructure spending from the other hyperscalers, Techie doesn't spot any reason to believe that NVDA's best days are behind it.

"My thesis remains intact," concludes Techie, who assigns NVDA shares a Buy rating. (To watch The Techie's track record, click here)

Wall Street is also sending a strong signal of support. With 35 Buys, 1 Hold, and 1 Sell, NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $261.84 reflects a 39% upside from current levels. (See Nvidia stock forecast)