The last time we mentioned Nvidia (NVDA), it traded at about $217 a share. It would then rally to about $234.50, dip to $210, and then rally back to $228.86, where it currently stands. Even now, it’s still attractive, especially after the company announced a $150 billion stock buyback.
The increase now leaves the company with $235 billion in buyback authorization, which, according to Seeking Alpha, is the largest buyback program in U.S. history. Plus, as noted by NVDA CEO and founder Jensen Huang, “NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing. Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead.”
In addition, recent earnings weren’t too shabby.
EPS of $2.22 beat by 13 cents. Revenue of $96.22 billion, up about 106% year over year, beat by $4.06 billion. Data center revenue of $89 billion was up 117% year over year, too.
And, as also noted by Seeking Alpha, “Management issued Q3 revenue guidance of $108B, plus or minus 2%, exceeding the consensus of $104.61B, and provided preliminary fiscal 2028 growth expectations of ~70% – a supply-constrained outlook. Gross margins are projected at 74% for Q3, with margins expected to bottom in Q4 at 71-72% before settling at 72-73% in fiscal 2028 due to rising memory costs.”
From its last traded price of $228.86, we’d like to see NVDA closer to $250 by late October.
Sincerely,
Ian Cooper
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