Nvidia is So Cheap That It'll Be a Bargain Even if It Doubles

"NVIDIA closed Friday at $215.20, which puts the market cap at roughly $5.23 trillion. A multi-trillion-dollar sticker price scares some investors off, but it is the wrong anchor when the cash engine underneath is expanding this fast. Look at what the company actually produces and the multiple shrinks fast. FY2026 free cash flow came in at $96.58 billion, up 58.7% year over year. Net income hit $120.07 billion. EPS for the year was $4.77. Alpha Vantage pegs the PEG at 0.68, a mispricing you rarely catch in real time on a franchise this dominant."

"Zoom out and the picture sharpens. Pay double the current price and you are still buying a business compounding at rates most public companies cannot fake for a single quarter, let alone four in a row. The more you zoom out the cheaper it looks, and that is what keeps me adding."

"Q4 FY2026 revenue landed at $68.13 billion, up 73.21% year over year. Data Center alone produced $62.31 billion, and the networking line inside that segment grew 263%, a startup-deck growth rate inside a half-trillion-dollar segment. Management then guided Q1 FY2027 revenue to roughly $78 billion, and they did it with zero Data Center compute revenue from China baked in. Acceleration has not paused."

"The earnings beats have become almost monotonous. Eight straight quarters above estimates, with Q4 reporting $1.62 against a $1.52 consensus. Jensen Huang put it plainly on the last call: "Computing demand is growing exponentially. The agentic AI inflection point has arrived.""

NVIDIA trades at about 26 times forward earnings while revenue growth reached 65.47% in the last fiscal year. Free cash flow for FY2026 was $96.58 billion, up 58.7% year over year, and net income was $120.07 billion. FY2026 EPS was $4.77 and the PEG is estimated at 0.68. NVIDIA’s Q4 FY2026 revenue was $68.13 billion, up 73.21% year over year, with Data Center revenue at $62.31 billion. Networking within Data Center grew 263%. Q1 FY2027 revenue guidance is about $78 billion with no China Data Center compute revenue included. Earnings beats have continued for eight straight quarters, including Q4 results of $1.62 versus $1.52 consensus.

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