UBS Maintains Buy Rating on NVIDIA Corporation (NVDA) as Backlog Extends Into 2027

NVIDIA Corporation (NASDAQ:NVDA) ranks among the 12 Best Performing S&P 500 Stocks in the Last 10 Years.

NVIDIA Corporation (NASDAQ:NVDA) ranks among the best performing S&P 500 stocks in the last 10 years. On February 26, UBS maintained its Buy rating and $245 price target for NVIDIA Corporation (NASDAQ:NVDA), citing robust demand and revenue forecasts. The firm pointed out that the company's demand comments were perhaps the most optimistic it had encountered, with the backlog now running into the year 2027.

NVIDIA Corporation (NASDAQ:NVDA) reported top-notch fourth-quarter fiscal 2026 earnings of $68 billion, exceeding average projections by about $2 billion. The company also reported adjusted earnings per share of $1.62, which surpassed forecasts by $0.08.

After growing by more than 60% in the quarter before, NVIDIA's obligations to purchase inventory nearly doubled quarter-over-quarter. According to UBS, this leaves enough room for quarterly revenue to reach about $100 billion in the quarters ahead. The firm revised its earnings forecasts as well, increasing projected earnings per share for calendar 2027 and 2028 to about $12.70 and $14.80, respectively.

​NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company. It designs and develops graphics processing units and related technologies used in gaming, data centers, artificial intelligence, and autonomous systems.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. Follow Insider Monkey on Google News.