Angelo Zino's Case for $270 NVDA, Getting "Comfortable" with Circular A.I.

Core Viewpoint - The company has a strong buy rating with a price target of $270, based on a forward multiple of approximately 29 times the calendar 2027 estimate [1][2] Financial Performance Expectations - The company is expected to achieve an annualized free cash flow rate closer to $200 billion over the next 8 to 10 quarters [3] - Revenue expectations for the current quarter are around $56 billion, with the street estimate at approximately $55 billion, indicating a potential beat of about $1 billion [7] - For the January quarter, revenue expectations are set at $61 to $62 billion, slightly above street estimates, with whisper numbers around $63 to $64 billion [8] Margin Expectations - Gross margins are anticipated to expand, with expectations of 73.5% for the current quarter and 74.5% for the January quarter [9] Market Sentiment and Valuation - The narrative around AI stocks has shifted, with increased concerns about execution and infrastructure buildouts, which are more challenging than previous booking growth expectations [10] - Current valuation stands at about 21 to 22 times the calendar 2027 estimates, which is considered reasonable given the recent pullback [6] China Market Potential - If Nvidia can enter the China market, there is potential for an uplift of $20 to $30 billion in annual sales, although this is viewed as more of a 2026 story [17]