Does Nvidia Stock Still Have Enough Mojo to Buy?

Core Viewpoint - Nvidia's Q3 results showed significant growth, but the stock experienced a post-earnings dip due to AI bubble concerns and export restrictions on chips to China [1][2]. Financial Performance - Nvidia reported a 62% year-over-year growth in Q3 sales, reaching a record $57 billion, and a 60% increase in EPS to $1.30, surpassing consensus estimates by over 4% [4]. - The sequential growth of 22% from the previous quarter's sales of $46.74 billion marks one of the largest increases in Nvidia's history [4][5]. Future Guidance and Growth Drivers - Nvidia expects Q4 sales to reach a new peak of approximately $65 billion, exceeding Wall Street's expectations of $60.57 billion, indicating strong ongoing demand for AI [6]. - The company has strategic partnerships with firms like OpenAI and Uber, enhancing its position in the AI ecosystem [7]. Sales Estimates - Zacks Consensus Estimates for upcoming quarters show projected sales of $60.57 billion for the current quarter and $63.71 billion for the next quarter, with year-over-year growth estimates of 54% and 44.6% respectively [8]. New Developments - Nvidia's Vera Rubin platform, set to launch in Q3 2026, aims to support advanced AI workloads, symbolizing the company's ambition to lead in the AI space [9]. Analyst Sentiment - Following the strong Q3 report, analysts have upgraded price targets for Nvidia, with an average target of $239.49, suggesting a 28% upside potential [10][11]. - Despite a high forward earnings valuation of 41X, Nvidia's current valuation is lower than its decade-high of 118X, indicating potential for recovery [11][12].