Stocks
Nvidia Poised for Long-Term Gains Despite Near-Term Risks
Nvidia Corporation (NVDA) has been rated as a Strong Buy due to its unmatched efficiency in AI hardware and robust earnings growth.
The company's valuation at 32x earnings is considered well below historical tech bubbles, with projected EPS growth of 90% this year and 45% next year.
NVDA's ecosystem, which includes CUDA software, industrial capacity, and market share, creates high switching costs that insulate the company against competition from AMD and hyperscalers.
Even with multiple compressions to 22x and moderate EPS growth to $13, NVDA could deliver a 35% upside by FY28, with risks mainly stemming from macroeconomic factors and hyperscaler self-sufficiency.