NVIDIA (NVDA) is back in focus after Zayo Group announced plans to build more than 8,000 miles of new long-haul fiber using NVIDIA AI infrastructure, a move aimed at supporting expanding AI data traffic.

All of this AI infrastructure news around NVIDIA arrives while momentum in the stock has picked up again, with a 7 day share price return of 11.56% and a year to date share price return of 18.59%, set against a very large 5 year total shareholder return.

If you are tracking how AI infrastructure spending could influence other opportunities, it may be worth scanning a wider set of potential beneficiaries through the 56 AI infrastructure stocks

After this sharp move and a market value around US$5.4b, the question is whether NVIDIA’s recent AI wins still leave meaningful upside ahead, or if investors have already paid up for most of the story.

Most Popular Narrative: 20% Undervalued

The most followed NVIDIA narrative pegs fair value at $280 per share, above the recent $223.96 close, which frames the stock as trading below that storyline.

NVIDIA is not just a chipmaker. It’s the platform that powers modern AI.

Data Center Revenue: Now >70% of total revenue, and growing like a caffeinated cheetah.

Want to see what sits behind that fair value for NVIDIA? The narrative leans on rapid AI driven revenue expansion, thick margins and a premium future profit multiple. Curious which assumptions carry the most weight in that calculation?

Result: Fair Value of $280 (UNDERVALUED)

However, the NVIDIA narrative still faces clear pressure points if demand from a few large cloud customers slows, or if AI infrastructure spending expectations prove too optimistic.

Next Steps

With sentiment on NVIDIA split between concern about risks and optimism about rewards, it makes sense to move quickly and review the evidence yourself. To weigh both sides in one place, start with the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond NVIDIA?

If NVIDIA has sharpened your interest in AI and broader market opportunities, do not stop here. Fresh ideas across sectors can help round out your research.

• Spot potential value plays quickly by scanning the 52 high quality undervalued stocks that combine strong fundamentals with prices that sit below many investor radars.
• Strengthen the defensive side of your portfolio by reviewing the 83 resilient stocks with low risk scores that score well on resilience and stability.
• Hunt for less crowded opportunities by checking the screener containing 21 high quality undiscovered gems before attention and capital move on to the next theme.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.