BING-JHEN HONG
I am shocked that shares of NVIDIA Corporation (NASDAQ:NVDA) haven't surpassed their previous highs of $153.13 after delivering strong Q1 earnings. While most investors are looking at the top-line growth metrics, I am focused on the
Nvidia's Explosive Growth Potential Could Exceed Market's Expectations
Summary
- NVIDIA's Q1 results highlight explosive free cash flow growth and massive share buybacks, which I believe the market is undervaluing.
- Despite decelerating revenue growth and margin compression, NVIDIA's cash generation and strategic initiatives position it for years of outperformance.
- NVIDIA's expansion into sovereign AI, enterprise AI, and robotics, plus the Blackwell platform ramp, significantly expands its total addressable market.
- At 21.3x, 2027 earnings and 53.5% projected EPS growth, NVIDIA is deeply undervalued; I expect shares to approach $200 within a year.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, GOOGL, AMZN, AAPL, META, TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
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