This valuation exercise probably reveals more about Palantir than it does Nvidia.You know a stock's been a huge winner when its price falls nearly 20% and has still more than doubled year to date. Palantir Technologies (PLTR -1.42%) is such a stock. You can also feel good about a stock's resilience when it plunges nearly 30% only to claw its way back to a year-to-date gain of more than 25%. Nvidia (NVDA -0.24%) fits that description.Both Palantir and Nvidia are riding the artificial intelligence (AI) wave b ...

Investment Rating - The report assigns a 12-month investment rating of "Buy" for NVIDIA Corp with a price target of US$175.00 [3] Core Insights - The report highlights NVIDIA's strong revenue growth potential, particularly in the data center segment, with visibility into a pipeline that could yield approximately US$400 billion annually over the next 2-3 years [4][5] - The gaming segment has shown significant improvement, with a nearly 50% quarter-over-quarter increase in revenue, driven by recovering supply chains and demand [7] - The report emphasizes the importance of NVLink technology in driving networking revenue growth, which increased by 64% quarter-over-quarter [5] Financial Summary - Revenues are projected to grow from US$26.97 billion in 2023 to US$204.78 billion in 2026, representing a 56.9% increase [8] - Net earnings are expected to rise from US$8.37 billion in 2023 to US$110.20 billion in 2026, reflecting a 48.4% growth [8] - The diluted EPS is forecasted to increase from US$0.33 in 2023 to US$4.48 in 2026, indicating a 49.6% growth [8] Valuation Metrics - The report maintains a price target of US$175 based on a target multiple of approximately 29x and an EPS estimate of US$6.05 for FY27 [6] - The P/E ratio is projected to decrease from 53.7 in 2023 to 22.7 in 2027, indicating a more favorable valuation over time [9] - The report notes a significant increase in gross profit margin, expected to stabilize around mid-70% by the end of FY26 [7] Market Position - NVIDIA's market capitalization is reported at US$3,363 billion, with a free float of 96% [3] - The company is positioned strongly in the semiconductor industry, particularly in graphics processing units and AI infrastructure [11]