Bull of the Day: NVIDIA Corp. (NVDA)

NVIDIA Corp. NVDA is back to being a Zacks Rank #1 (Strong Buy).

Are you in?

NVIDIA is the leading AI and accelerated computing company in the world. It is in the exclusive “trillion-dollar” club. NVIDIA has a market cap of $5.4 trillion.

NVIDIA Beat Again in the Fiscal Second Quarter 2027

On Aug 26, 2026, NVIDIA reported its fiscal second quarter 2027 results and beat on the Zacks Consensus by $0.13. Earnings were $2.22 versus the Zacks Consensus Estimate of $2.09.

It was the fifth earnings beat in a row. NVIDIA has only missed on earnings three times in the last five years with two of those in 2022, before the AI Revolution began. That’s an impressive record.

Revenue soared another 106% to $96.2 billion, up from $46.7 billion in Q2 of fiscal 2026. Data center revenue jumped 117% to $89 billion.

Gross margins were 75%.

As usual, NVIDIA’s CEO, Jensen Huang, was bullish.

“AI has reached its inflection point,” said Huang.

“It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” he added.

Analysts Remain Bullish on NVIDIA in F2027 and F2028

Despite all the doom and gloom about AI being “over” the earnings estimates on NVIDIA don’t tell that story.

One estimate is higher in just the last week with thirteen estimates higher in the last thirty days, which is the analysts raising estimates after the earnings report.

The fiscal 2027 Zacks Consensus Estimate has jumped to $9.25 from $8.91, which is earnings growth of 93.9% because NVIDIA only made $4.77 last year.

Twelve estimates are also higher for fiscal 2028 with the Zacks Consensus rising to $15.33. That would be further earnings growth of 65.8%.

I have said many times over the years on the Zacks Market Edge Podcast that we will never see this kind of earnings, and sales, growth from a large cap company, over this many years, ever again.

Here’s what it looks like on the price, consensus, and surprise chart.

Shares of NVIDIA are Beating the S&P 500 in 2026

NVIDIA has been a hot stock for the last few years but in 2026, it took a break. But that “break” means it is still up 20.4% year-to-date.

And that’s beating the S&P 500.

NVIDIA is attractively priced. No, I’m not calling it “cheap” but valuations are more attractive now than the last few years.

NVIDIA trades with a forward price-to-earnings (P/E) ratio of 24. That’s low for NVIDIA historically.

It also has a price-to-sales (P/S) ratio of 17.7. While that is expensive, even for a growth company, it’s down from the high of 40 in 2023.

Sales are expected to rise 88% in fiscal 2027 and another 65.5% in fiscal 2028.

NVIDIA is also shareholder friendly. It now pays an annual dividend of $1.00 which is yielding 0.5%. It also has a massive share repurchase authorization, which still has $99 billion left as of the end of the fiscal second quarter of 2027.

For years, many have doubted NVIDIA. But it has the coveted Zacks #1 (Strong Buy) rank again.

For investors who were waiting for NVIDIA to get more attractive on a fundamental basis, now is the time. NVIDIA should be on your short list.   

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This article originally published on Zacks Investment Research (zacks.com).

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