NVIDIA Shares Look Reasonable at $190 Amid Strong Fundamentals
NVIDIA (NVDA) shares are currently trading at $190.01, roughly 20% below their 52-week high near $236. Despite this significant drop, fundamentals for the company remain strong.
The stock's design and manufacturing of GPUs, networking fabric, and software powering AI training and inference continue to improve. Its Blackwell platform serves as the reference architecture for hyperscaler AI factories, while its data center franchise is at the center of what CEO Jensen Huang calls 'the largest infrastructure expansion in human history.'
The recent earnings filing showed Q1 FY2027 revenue landing at $81.61 billion, up 85.2% year over year, with Data Center revenue at $75.25 billion and networking tripling to $14.8 billion. Free cash flow hit $48.55 billion in the quarter.
The company's valuation is a surprise, with a trailing P/E of 30, forward P/E of 22, and PEG ratio of 0.54. Return on equity of 101.5% and operating margin of 60.4% are considered 'monopoly-grade.'