Nvidia (NASDAQ:NVDA) stock now represents the world’s fourth-largest company, and the third-largest in the U.S. If the chip maker can gain roughly 4.5% from current levels, it will surpass Saudi Aramco, leapfrogging another absolute behemoth in the company’s quest to become the largest company in the world.

At this growth rate, I wouldn’t rule it out. Nvidia posted another absolutely ridiculous quarter, smashing analyst expectations on the top and bottom line, and surging to a valuation of more than $2 trillion in recent days. With the dust settling and investors taking a more cautious view of what’s ahead, let’s dive into whether long-term growth investors can really consider Nvidia a buy at current levels right now.

Some Serious Market Cap Growth

All eyes are on Nvidia’s market cap, which has gone absolutely parabolic at nearly $2 trillion, at the time of writing. The question after such an incredible move of over 60% year-to-date (and we’re not even through the first two months of the year yet) is whether this momentum can continue.

Indeed, trees don’t grow to the sky. At some point, a company simply can’t raise the bar any higher as it reaches complete domination of its total addressable market.

Now, I wouldn’t say that Nvidia is even close to this point now. Analysts, such as those at Melius Research, continue to raise their price targets (in this case to $920, but some have gone into four-digit territory).

For now, it’s hard to blame analysts to have this view. Investors are willing to pay ever-higher prices for the company’s future earnings, which also appear to be increasing at a much more rapid rate than anyone predicted.

Strong Fundamentals

As mentioned, it’s really Nvidia’s fundamentals which have driven the recent surges in its stock price. On a forward-looking basis, NVDA stock now trades at roughly 66-times earnings. While that’s certainly not cheap, given the company’s triple-digit growth rate, it’s also reasonable on a PEG basis.

Thus, I’m a little conflicted myself about whether to call this stock cheap or expensive – it really depends on your perspective and forward-looking growth projections.

Adding to the positive outlook fro Nvidia’s recent surge is the company’s impressive return on equity figures. At an average of 27% over the past five years, Nvidia crushes the market and its sector.

So long as the company can continue to produce these kinds of return on investor capital, it’s a stock that has plenty of upside potential from a fundamentals perspective for certain investors.

Be Cautious, But Consider Buying

At Nvidia’s current valuation, it’s really a question of how investors view the company moving forward. My perspective has certainly shifted from believing this stock was simply overvalued and could not continue to grow at such a rapid rate, to understanding that the secular tailwinds supporting Nvidia (particularly from AI and data center growth) are real.

Thus, I think NVDA stock should warrant a cautious buy at current levels. I wouldn’t go all in by any means, but I can certainly see why the dips will probably continue to be bought for this high-growth name.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.