260,000 Reasons to Buy Nvidia Stock Now

Core Insights - Nvidia's stock has experienced significant growth, up 45.4% year-to-date and 71.5% over the past six months, reaching a high of $212.19 [1][2] - With a market capitalization of nearly $4.9 trillion, Nvidia is the world's most valuable company, showcasing its dominance in the tech sector [2] - The company has transitioned from a gaming graphics leader to a key player in the AI boom, with its GPUs powering various applications [3][6] Company Developments - Nvidia is set to supply over 260,000 AI chips to major South Korean companies, including Samsung and Hyundai, as part of a national initiative to establish South Korea as the "AI capital of Asia" [5][17] - The company's fiscal Q2 2026 earnings report showed impressive results, with revenue of $46.7 billion, a 56% year-over-year increase, and adjusted EPS of $1.05, up 54% [11] - Nvidia's data center division reported record sales of $41.1 billion, driven by its Blackwell architecture and strong demand for its networking products [12] Financial Performance - Nvidia's gross margins remained robust at 72.7%, supported by the release of reserved inventory [13] - The company anticipates Q3 revenue around $54 billion, with a projected non-GAAP gross margin of approximately 73.5% [14] - Analysts expect Nvidia's EPS to grow by 44% to $4.22 in fiscal 2026, followed by a 41.2% increase to $5.96 in fiscal 2027, indicating strong growth momentum [16] Market Sentiment - Analysts maintain a bullish outlook on Nvidia, with a consensus rating of "Strong Buy" and an average price target of $233.05, suggesting a potential upside of 19% [21] - Loop Capital has set a high price target of $350, indicating expectations for significant growth driven by generative AI [19][21] - The upcoming release of Nvidia's fiscal Q3 2026 earnings report is highly anticipated, with expectations for continued strong performance [15]