Fundamental Strength Contrasts with Market Sentiment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22 hours ago
0mins
Should l Buy NVDA?
Source: Benzinga
- Earnings Beat: The company reported adjusted earnings of $0.69 per share and revenue of $12.68 billion for Q2, surpassing consensus estimates, yet the stock's momentum score plummeted from 16.26 to 6.35, indicating that market focus is shifting from operational success to technical weaknesses.
- Muted Market Reaction: Despite raising full-year revenue guidance to $40 billion, the muted investor response, influenced by ongoing volatility and price target reductions from analysts, has placed the company in the bottom 10% for relative strength.
- Technical Erosion: While Super Micro maintains strong fundamental scores with a quality rank of 98.52 and a growth rank of 82.57, its price-driven metrics have turned sharply negative, trading 34.11% below its 200-day simple moving average, reflecting a bearish technical outlook.
- Investor Outlook Uncertain: With a neutral Relative Strength Index of 45.40 and a momentum score nearing zero, significant uncertainty looms over the stock's short-term trajectory, although a value rank of 80.49 suggests it may be undervalued relative to its assets and earnings, raising caution for short-term traders.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
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- Weak Market Performance: Since August 2025, Nvidia's stock has only risen by 5%, significantly lagging behind the S&P 500's 10% gain, indicating market caution regarding its future growth despite optimistic prospects in the AI sector.
- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
See More
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- Intensifying Competition: At the AI Impact Summit in New Delhi, OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei shared the stage, and their choice to raise fists instead of shaking hands highlights the fierce competition between their companies for global market share and user adoption.
- Advertising Controversy: The two companies have recently clashed over the use of ads in AI models, with Altman criticizing Anthropic's advertising strategy as 'clearly dishonest,' while Anthropic emphasized its focus on business growth rather than creating 'flashy headlines.'
- Capital Race: Since their inception, OpenAI and Anthropic have raised billions of dollars, showcasing the escalating competition for users, enterprise clients, and market share, reflecting the investment frenzy and potential in the AI sector.
- Safety Discussions: During the summit, Amodei discussed the 'serious risks' associated with AI, including autonomous behavior and potential misuse, while Altman argued that understanding AI safety should encompass 'societal resilience,' indicating differing perspectives on the future of AI safety.
See More
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- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
See More
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- Growing Market Demand: Analyst James Schneider from Goldman Sachs highlights a surge in demand for high-speed, short-range connectivity in AI data centers, which is expected to further drive growth for Credo Technology Group, showcasing the company's strong market potential.
- Buy Rating and Price Target: Goldman Sachs initiates coverage on Credo with a buy rating and sets a 12-month price target of $165, indicating a 29% upside from Wednesday's close, reflecting the analyst's confidence in the company's future performance.
- Significant Technological Advantage: Credo's Active Electrical Cables (AECs) technology offers low-cost, high-bandwidth, and highly reliable connectivity solutions, and Schneider believes this technology will remain mainstream for at least the next five years, further solidifying the company's market position.
- Diversification Strategy: Schneider commends Credo's diversification efforts into optical solutions, which he believes will support long-term growth, while also appreciating the company's carefully managed guidance and investor messaging.
See More
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- Ad Campaign Support: The Jobs and Democracy PAC, aligned with the Democratic Party, is launching a six-figure ad campaign to support Alex Bores in New York's 12th congressional district, where Bores is a key proponent of the RAISE Act, which mandates large AI developers to publish safety protocols and report serious misuse of their technologies.
- Competitive Primary: Bores faces a crowded field in the Democratic primary, and given the district's demographics, the winner of this primary is likely to secure the general election, making AI regulation a pivotal issue for voters.
- Bipartisan Backing: The Jobs and Democracy PAC is part of a larger bipartisan initiative led by former lawmakers Brad Carson and Chris Stewart to support candidates advocating for increased AI regulation, recently bolstered by a $20 million donation from Anthropic.
- Regulatory Debate Intensifies: Congressional discussions on AI regulation are centered around whether to temporarily ban states from implementing certain AI laws to prevent a patchwork of regulations, with proponents arguing it could slow AI development, although the proposal has failed to gain bipartisan support.
See More
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- Price Surge Trend: Samsung Electronics is negotiating a price of about $700 per unit for its next-generation High Bandwidth Memory HBM4, which is 20%-30% higher than the previous generation, indicating a regained pricing power in the scarce AI memory market that could enhance semiconductor profits.
- Production Milestone: Samsung has commenced mass production of HBM4 and shipped commercial products to customers, aiming to recover its market position after initially trailing SK Hynix in early AI memory momentum, signaling a resurgence in its competitive edge in the high-end AI memory sector.
- Smartphone Cost Impact: The rising memory prices are prompting Samsung to consider a price increase of 100,000 to 200,000 won for the Galaxy S26 series, with the Galaxy S26 Ultra 512GB potentially exceeding 2 million won, which will directly affect the bill of materials for its smartphones.
- Market Competition Dynamics: Analysts expect SK Hynix to supply about 70% of HBM4, while Samsung will provide roughly 30%, suggesting that Samsung may narrow the pricing gap with SK Hynix in the coming years, especially if it supplies more premium-priced HBM to Nvidia.
See More
