Nvidia Stock Is Slowly Moving Higher - Short Put Plays Could Work Here

Core Viewpoint - Nvidia, Inc. (NVDA) stock is experiencing upward movement as analysts have increased their price targets, indicating potential for existing investors to capitalize by selling short out-of-the-money put options [1][7]. Financial Performance - NVDA stock is currently trading at $183.37, which is an increase from $180.17 noted in the previous analysis [1][3]. - Analysts have revised revenue estimates for the current fiscal year (ending January 31) to $206.45 billion, a 1% increase from the previous estimate of $204.33 billion [5]. - For FY 2026, revenue estimates have been raised to $273.81 billion, up from $266.33 billion, reflecting a 1.66% increase [5]. Free Cash Flow (FCF) Estimates - With a projected 43% FCF margin, FCF for next year could range between $88.77 billion and $117.74 billion, averaging just over $100 billion ($103.3 billion) [5]. - This represents a potential increase of 43.4% compared to the $72.023 billion in FCF over the last 12 months [6]. Market Capitalization and Price Target - Using a 2% FCF yield metric, Nvidia's market cap could rise to $5,165 billion, suggesting a 16% upside from the current market value of $4.455 trillion [6]. - The updated target price for NVDA stock is estimated at $212.40 per share, which is 2.6% higher than the previous target of $207 [6]. Analyst Sentiment - The average price target from 63 analysts has increased to $211.93, up from $201.98 noted in the last analysis [7]. - The overall sentiment indicates that NVDA stock is undervalued relative to its potential, as analysts continue to raise revenue and FCF estimates [7].