NVIDIA reported fiscal 2026 revenue of $215.94 billion and net income of $120.07 billion. Shares rose 18.83% year to date to $224.41, though the stock remains below its 52-week high and shows choppy performance. A key overhang is China, where guidance excludes China data center compute and management described the China market as effectively closed to U.S. industry. Additional concerns include export-control-related sentiment and AI bubble chatter. Wall Street targets $272.94 based on modest assumptions, but the view is that AI scaling laws remain intact for training and inference, requiring massive compute. With Blackwell contributing 70% of data center compute revenue and additional platforms ahead, earnings growth could extend beyond 2027, supporting a path toward $400 per share.
"Management's Q1 FY27 guide of $78 billion in revenue explicitly excludes China Data Center compute, and Jensen Huang flagged that the "$50 billion China market is effectively closed to U.S. industry". Add bearish sentiment around Super Micro export control violations and AI bubble chatter, and you have a stock pausing for breath."
"They underweight the durability of the AI capex cycle. Huang said plainly on the call: "AI scaling laws remain firmly intact not only for training but now inference too, requiring massive scale compute." With Blackwell at 70% of Data Center compute revenue and Vera Rubin ahead, the earnings growth runway extends well past 2027."
"Reaching $400 from $224.41 requires a 78.2% gain over roughly four years. That is high single digit annual returns, hardly outlandish for a name that just printed 1,501% over five years. With forward EPS of roughly $8.46, a $400 stock implies a forward P/E of 47x. The current forward P/E sits at 27x, so the target requires about 2"
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]