Stocks
Nvidia Stock Seen as Mispriced Despite Record Revenue Growth
Nvidia's stock has seen significant growth over the last year, but its valuation may be too high.
The company's revenue grew by 85% in Q1 FY27 to $81.6 billion, with a record $48.6 billion in free cash flow and gross margin holding at 75%.
Nvidia's business model has shifted, with $37 billion coming from AI clouds, industrial, and enterprise customers, reducing its dependence on Big Tech budgets.
The author of the article remains bullish on Nvidia's prospects, citing its ability to capture a significant portion of the expected $725 billion in Big Tech CapEx spending in 2026.