UBS: Nvidia Stock Still Undervalued Despite Strong Earnings

Nvidia (NVDA) stock remains undervalued according to UBS analysts, who used their HOLT valuation framework to forecast an 86% cash flow return on investment. This is a rare feat, as only 30 companies globally are at this level.

The stock has been range-bound for three months, gaining just 1.5%, but its quarterly revenue jumped 105.9% year over year to $96.22 billion, beating estimates of $92.27 billion.

Analysts hold a 'Buy' consensus with an average price target of $324.34, and Nvidia has an $80 billion buyback program in place.