Why These Best Undervalued Stocks to Buy Now Include Nvidia in March 2026

Despite Nvidia’s remarkable 1,110% surge since early 2023, a compelling case exists for why investors should still consider this mega-cap technology leader among the best undervalued opportunities in today’s market. While the stock recently approached its all-time peak in late October 2025, three fundamental factors suggest the valuation remains attractive for those evaluating entry points.

Exceptional Margin Structure Commands Premium Valuation

The strongest argument supporting Nvidia’s value proposition rests on its financial architecture. In fiscal 2026, the company reported $215.9 billion in revenue—a staggering eightfold increase from the $27 billion posted in fiscal 2023. This explosive growth tells only part of the story, however. What’s truly remarkable is that Nvidia maintained and actually expanded its profitability metrics despite scaling to become a global technology giant.

The company achieved gross margins of 71%, operating margins of 60.6%, and net profit margins of 55.6%—translating into $120.1 billion in net income for the fiscal year. Data center operations drove this expansion, contributing $193.7 billion of the total revenue compared to just $15 billion three years earlier. These margin levels demonstrate Nvidia’s pricing power and customers’ willingness to pay premium prices for performance gains that directly impact their bottom lines. Such financial resilience supports the case that current valuations may offer value for long-term investors seeking exposure to the best undervalued tech stocks.

Capital Return Strategy Amplifies Shareholder Returns

Nvidia’s substantial cash generation enables an aggressive shareholder return program that deserves attention from dividend and total-return seekers. The company repurchased $40.1 billion of stock in fiscal 2026, compared to $33.7 billion in the prior year and $9.5 billion in fiscal 2024—demonstrating accelerating commitment to returning capital.

While these buybacks represent a modest percentage of Nvidia’s $4.3 trillion market capitalization, they systematically reduce share count and accelerate earnings-per-share growth trajectory. This capital allocation discipline allows Nvidia to fund innovation investments while simultaneously rewarding shareholders through reduced share dilution. The upward trajectory of repurchase activity signals management confidence and provides another reason to consider Nvidia among the stocks worth buying for income and growth oriented portfolios.

Relentless Technological Advancement Preserves Competitive Advantage

Skeptics have long worried that Nvidia’s margins face compression from increased competition and customer pushback on pricing. Yet the company continues to defy these expectations through tangible performance improvements that justify premium positioning.

The latest evidence emerged in Nvidia’s fiscal 2026 earnings announcement: Blackwell Ultra delivers up to 50 times better performance and 35 times lower costs for agentic AI workloads compared to the older Hopper platform. The company’s forthcoming Rubin architecture builds on this advantage through what Nvidia terms “extreme codesign”—integrating software and hardware optimization at the data center rack level rather than as separate components. By designing graphics processing units alongside switch technologies as an integrated system, Nvidia achieves even greater efficiency gains.

This innovation roadmap positions the company perfectly for the anticipated shift toward agentic AI and physical AI (autonomous systems and robotics) as the next computational frontier. The combination of sustained technical leadership and expanding addressable markets suggests Nvidia can maintain premium margins for years ahead—a critical factor for valuation sustainability.

Evaluating the Investment Case

At 39.9 times fiscal 2026 earnings, Nvidia may appear expensive in isolation. However, when compared against the S&P 500’s 29.9 times earnings multiple, the relative premium becomes less pronounced when adjusted for margin quality and growth runway. The combination of exceptional profitability, aggressive capital returns, and technological moat protection supports the thesis that Nvidia deserves consideration among investors evaluating best undervalued stocks to buy now.

The Motley Fool Stock Advisor research team maintains that disciplined stock selection across the market continues to outperform, with their historical recommendations generating 941% average returns versus 194% for broad market indexes. For investors building long-term portfolios, companies exhibiting Nvidia’s financial strength and innovation cadence merit serious consideration.