As Nvidia Launches Its Nemotron 3 AI Model, Should You Buy, Sell, or Hold NVDA Stock?
With headlines dominated by the upcoming Vera Rubin graphics processing units, investors could easily overlook another strategic move from NVIDIA Corporation (NVDA). On March 11, the company unveiled Nemotron Super 3, its most capable artificial intelligence (AI) model yet, underscoring that the firm does far more than design the chips powering the AI revolution.
Nemotron Super 3 targets large-scale agentic AI systems that demand both sophisticated reasoning and high-speed execution. According to the company, the system delivers up to five times higher throughput and twice the accuracy of the prior Nemotron Super model, positioning it as a powerful tool for complex enterprise-level AI workloads.
The timing also carries weight. The announcement has arrived just days before the annual NVIDIA GTC Conference, scheduled to begin on March 16. The event typically serves as the company’s global stage for unveiling major technological advancements, including its next generation of GPU platforms.
All of this reinforces Nvidia’s widening advantage. Hardware leadership still anchors the story, but the growing AI software stack strengthens the company’s long-term competitive edge. Against this backdrop, the focus is now squarely on the stock’s current investment outlook.
Santa Clara, California-based NVIDIA stands at the center of the modern computing revolution. With a market value of roughly $4.5 trillion, the company designs the graphics processing units that power gaming systems, large-scale AI workloads, and the data centers that support today’s digital economy.
Beyond chips, Nvidia supplies an integrated platform of computing, networking, and software technologies to cloud providers, enterprises, developers, and automakers building high-performance systems.
The stock’s recent performance tells a nuanced story. Year-to-date (YTD), shares are marginally down. Over a longer horizon, however, momentum remains firmly intact. Over the past 52 weeks, the stock has climbed 58.67%, reflecting sustained investor confidence in the company’s central role in the AI infrastructure boom.
Valuation metrics remain elevated, though not without context. The stock trades at 24.57 times forward adjusted earnings and 12.29 times sales. The multiples sit above industry averages, yet they come in below Nvidia’s own five-year historical norms.
Nvidia also pays a modest dividend of $0.04 per share annually, translating to a yield of 0.02%. The next quarterly payment of $0.01 per share is scheduled for April 1 to shareholders of record as of March 11.
On Feb. 25, the chipmaker reported fourth-quarter fiscal 2026 results that comfortably surpassed analyst expectations. Total revenue reached $68.13 billion, marking a 73.2% increase from the same quarter a year earlier and exceeding Street’s forecast of $65.42 billion.
Adjusted EPS climbed 82% from the year-ago value to $1.62, also beating the Street estimate of $1.52. The company’s data center business continues to act as the main growth engine. Revenue from the segment surged to $62.3 billion, rising nearly 75% year-over-year (YOY) as hyperscale cloud providers and enterprises expanded AI infrastructure.
In addition, gaming delivered steady momentum. Fourth-quarter gaming revenue reached $3.7 billion, marking a roughly 47% increase from the prior year and reflecting strong adoption of Nvidia’s Blackwell architecture across high-performance graphics systems.
Furthermore, the company issued guidance that exceeded analyst projections, while Chief Executive Officer Jensen Huang emphasized that demand for Nvidia’s chips remains “skyrocketing.” Looking ahead, management expects Q1 fiscal 2027 revenue to reach $78 billion, plus or minus 2%.
Meanwhile, analysts project Q1 fiscal year 2027 EPS to grow 116.9% YOY to $1.67. For the full fiscal year 2027, the bottom line is expected to rise 64.6% from the prior year to $7.52 per share, followed by another 25.5% increase in fiscal year 2028 to $9.44.
Wall Street continues to show strong conviction in Nvidia, reflecting the company’s dominant position in the AI infrastructure market. Wedbush analyst Matt Bryson maintains an “Outperform” rating and has raised his price target to $300 from $230.
Broadly speaking, analyst sentiment remains overwhelmingly positive with an overall rating of “Strong Buy.” Among the 49 analysts currently covering the stock, 44 assign a “Strong Buy” rating, three maintain a “Moderate Buy,” one recommends “Hold,” and one analyst has issued a “Strong Sell.”
Based on current projections, the average price target of $265.01 implies potential upside of 44.4%. Meanwhile, the Street-high target of $360 set by Tigress Financial analyst Ivan Feinseth suggests an even stronger rally of 96% if Nvidia continues delivering the growth trajectory investors have come to expect.
On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com