Nvidia Stock Is Still Cheap, Reckons Fundstrat’s Tom Lee
Nvidia reported Q2 fiscal 2027 revenue of $96.2B, up 106% YOY, and EPS of $2.22, beating estimates. The company projects 70% revenue growth by fiscal 2028. Amazon plans to deploy 2M Nvidia GPUs, easing concerns about chip competition. Analysts maintain a 'Strong Buy' consensus with a $324.56 target price, suggesting 45% upside.
How this was made
The 30-second read
Why it matters
Earnings beat and aggressive guidance could drive short‑term buying pressure.
Market read
The earnings beat and strong forward outlook are likely to influence tech‑heavy portfolios and AI‑focused funds.
What to watch
Large increase in accounts receivable could signal cash‑flow timing risks.
Background
Nvidia is a bellwether for AI‑related semiconductor demand.
Ticker impact
Nvidia reported Q2 FY2027 results with 106% YoY revenue growth, $2.22 EPS beat, and guidance of 70% FY2028 revenue growth.
Potential price rally on the back of earnings beat and growth outlook.
Revenue and EPS both exceeded expectations; guidance signals continued acceleration, attracting buying interest.
Market effects
AI and data‑center hardware sector may see broader bullish sentiment.
U.S. tech indices could receive a lift from Nvidia's results.
Global AI hardware demand outlook is reinforced.
Counterpoint
High growth guidance may be overly optimistic if supply‑chain constraints persist.
Key entities
- CompanyNvidia
AI chipmaker reporting Q2 FY2027 results.
