Research
Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of Nvidia Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our target price at $270, on a P/E of ~23x our CY 27 EPS view of $11.95, within peers but well below its historical averages. After better-than-expected Apr-Q results and Jul-Q guidance, we lift our FY 27 (Jan.) EPS view to $8.90 from $8.41 and FY 28 to $11.95 from $11.40. We come away positive on NVDA's growth trajectory (e.g., CPUs, content growth), greater cash return to shareholders (at least $100B annually rate on $200B FCF run rate), and valuation (~18x on CY 27 EPS). NVDA's greater traction on the CPU side with Vera opens a brand new $200B TAM, with potentially $20B in standalone CPU revenue in FY 27, a market NVDA has never addressed before. We also see accelerating diversification beyond hyperscalers, as AI Clouds, Industrial, & Enterprises now nearly match the spending of hyperscalers and are growing 31% sequentially vs. Hyperscale's 12% sequential growth. This balanced customer mix validates the broadening AI adoption thesis across enterprises, sovereign nations, and industrial applications.
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