NVDA
The bull parade rolls on
Nvidia just picked up another optimistic valuation call, and this one comes with a shiny new $265 price target. The pitch is pretty straightforward: the company’s latest quarter showed the AI money spigot is still wide open, with record data center revenue, expanding margins, and free cash flow that looked more like a geyser than a drip.
Why the Street still can’t quit Nvidia
The argument here isn’t exactly subtle. Nvidia posted Q1 non-GAAP EPS of $1.87 on $81.6 billion in revenue, both ahead of consensus, while free cash flow jumped to $48.6 billion. That’s the kind of combo platter that makes bulls clap and bears quietly refresh their spreadsheets.
What’s doing the heavy lifting?
- Data center revenue is still the star of the show, because AI demand hasn’t exactly taken a coffee break
- Margins are expanding, which means more of each sales dollar is turning into actual profit
- The valuation call bakes in a 27x P/E on $9.80 of normalized EPS, basically saying the stock can keep being expensive if the business keeps being this good
What it means for your portfolio
If you own Nvidia, this is another signal that the market’s favorite AI landlord still has believers lining up at the door. If you don’t, the message is more annoying: even after a monster run, the Street still sees upside if Nvidia keeps executing like this.
Big picture: Nvidia is still being treated less like a chipmaker and more like the toll booth on the AI highway. As long as that traffic stays jammed, the bull case keeps getting room to breathe.