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I recently discussed Nvidia Corporation (NASDAQ:NVDA) in my earnings preview article in which I built a simple DCF model, valued Nvidia at $2T or 37% lower than its current market cap of $3.2T, and assigned a
Nvidia: Revising Estimates Lower
Summary
- Revised my intrinsic value estimate for Nvidia to $1.9T, 40% lower than its current market cap, and reiterate a SELL rating.
- Nvidia's Q1 FY 2026 revenue and gross margin outlook were below my forecasts, prompting a downward revision in my estimates.
- Increased operating expenses forecast for FY 2026 and FY 2027, reflecting potentially lower operating leverage and higher costs.
- Nvidia's gross margin outlook remains uncertain, raising skepticism about future margin recovery and reinforcing my cautious outlook.
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