NVDA
The “cheap” AI giant? Sure, why not.
Nvidia is having one of those Wall Street moments where the numbers sound made up. Ahead of its fiscal Q2 earnings, Raymond James lifted its price target to $352 from $330 and basically said the market is underappreciating the stock’s growth machine.
The headline-grabber: the firm says Nvidia trades at less than 15 times calendar 2027 GAAP earnings, while the S&P 500 sits around 19 times. For a company still growing like a caffeine-fueled startup in a trillion-dollar suit, that gap looks a little odd.
GPUs are the main event, but CPUs are the sneaky subplot
Nvidia still lives and dies by GPUs, but Raymond James sees another lane opening up: CPUs. The firm thinks agentic AI could help Nvidia become the world leader in CPU revenue within a few years, with CPU sales rising from about 3% of revenue today to roughly 5% by 2028.
That’s not a side quest anymore. It’s Nvidia trying to become the Swiss Army knife of the AI stack — chips for training, chips for inference, chips for basically every part of the machine.
Why investors should care
Wall Street is expecting Nvidia to post around $92.03 billion in revenue and $2.09 in EPS for the quarter, so the bar is already sky-high. If Nvidia clears it cleanly, the stock could keep flexing. If not, well, even the market’s favorite AI dragon can get singed.
Big picture: Nvidia doesn’t just need to beat earnings — it needs to prove the AI boom still has runway, and that its valuation can keep looking “fundamentally illogical” in the best possible way.