Tom Lee Says Nvidia Stock Is Still Cheap — Here's His Bull Case

The Call

Tom Lee, the ever-optimistic head of research at Fundstrat, is sticking with one of the most consensus-yet-controversial trades on Wall Street: Nvidia. Even after the stock's monster run over the past few years, Lee says NVDA still looks inexpensive relative to what the company is actually delivering.

That's a bold claim for a stock that's become the poster child of the AI boom, but Lee's argument isn't about the sticker price — it's about growth. When you stack Nvidia's earnings trajectory against its valuation multiple, he sees room to run rather than a stock priced for perfection.

Why Lee Thinks It's Still a Buy

Lee has built a reputation on staying bullish through pullbacks, drawdowns, and endless "is the AI trade over" headlines. His thesis on Nvidia leans on a few pillars:

• **Earnings power**: Nvidia continues to post growth numbers that, in Lee's view, justify a premium multiple rather than a discount.
• **AI infrastructure demand**: Data center buildout for AI training and inference isn't slowing — it's arguably still in early innings, according to Lee.
• **Relative valuation**: Compared to its own growth rate and to other mega-cap tech names, Lee argues NVDA's forward multiple isn't as stretched as headlines suggest.

This isn't Lee's first rodeo defending Nvidia. He's been one of the loudest bulls on the AI trade broadly, and Nvidia sits at the center of that thesis as the primary supplier of the chips powering the boom.

The Skeptics' Side

Of course, not everyone agrees. Critics point out that Nvidia's valuation still bakes in years of flawless execution, and any wobble in AI capex spending from hyperscalers like Microsoft, Meta, or Amazon could hit the stock hard. There's also the perennial concern about customer concentration — a handful of massive buyers account for a huge chunk of Nvidia's revenue, which is both a strength and a risk.

What This Means for Investors

Tom Lee's comments won't settle the debate over whether Nvidia is overvalued or undervalued — that argument has been raging since the stock first crossed a trillion-dollar valuation. But his continued bullishness matters because Lee has been a reliable bellwether for retail and institutional sentiment throughout this AI cycle.

For everyday investors, the takeaway isn't "buy because Tom Lee said so." It's that the case for Nvidia still hinges on whether AI infrastructure spending keeps accelerating. If it does, bulls like Lee will likely keep looking right. If capex growth slows even modestly, the stock's premium valuation could come under real pressure.

Either way, Nvidia remains the single most important stock to watch if you want a read on where the broader AI trade — and by extension, the market — is headed next.