With a market cap. of $5.1 trillion, NVIDIA Corporation (NVDA) is a global computing infrastructure company that provides advanced graphics, compute, and networking solutions across gaming, data center, professional visualization, and automotive markets. It delivers AI platforms, accelerated computing technologies, and software solutions to enterprises and industries worldwide.
Shares of NVIDIA have underperformed the broader market over the past 52 weeks. NVDA stock has gained 2.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 11.7%. Moreover, shares of the company are up 11% on a YTD basis, compared to the SPX's 11.3% gain.
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Zooming in further, shares of NVIDIA have also underperformed compared to the State Street SPDR S&P Semiconductor ETF's (XSD) 30.8% increase over the past 52 weeks.
www.barchart.com NVIDIA shares soared 8.7% following its Q2 2027 results on Aug. 26, as revenue more than doubled to $96.22 billion and adjusted EPS of $2.22, beating analysts’ estimates, driven by booming AI-computing demand and data-center revenue that more than doubled to $89 billion, above the estimate. The company reinforced expectations for sustained AI growth by forecasting Q3 revenue of $108 billion, plus or minus 2% and projecting approximately 70% revenue growth for fiscal 2028, far above analysts’ previous forecast.
Further optimism came from expanding demand across AI labs, cloud providers, enterprises, and government customers, the rollout of its next-generation Vera Rubin platform, and a partnership with Amazon Web Services to deploy 2 million additional Nvidia GPUs in 2027 and 2028, outweighing concerns about memory shortages, rising component costs, and margins potentially falling to 71% - 72% in Q4.
For the current fiscal year, ending in January 2027, analysts expect NVDA's adjusted EPS to grow 103.5% year over year to $9.30. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 52 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 48 “Strong Buy” ratings, three “Moderate Buys” and one “Strong Sell.”
www.barchart.com This configuration is more bullish than three months ago, with 43 analysts suggesting a "Strong Buy."
On Oct. 27, Barclays analyst Thomas O’Malley maintained a “Buy” rating on NVIDIA with a $275 price target.
The mean price target of $328.75 represents a premium of 59.3% to NVDA's current levels. The Street-high price target of $515, implies a potential upside of 149.6% from the current price levels.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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