By Vandita Jadeja
Publication Date: 2026-10-01 15:00:00
NVIDIA just posted quarterly revenue that would have counted as a strong full year not long ago, yet the stock still trades at a fraction of what its earnings growth suggests it deserves. Something has to give, and the path…
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The quarter NVIDIA (NASDAQ:NVDA | NVDA Price Prediction | NVDA Price Prediction) just reported would have counted as a strong full year not long ago. Revenue reached $96.22B in Q2 fiscal 2027, up 105.8% year over year. Data Center generated $89.02B, and Networking alone contributed $40.31B.
As Jensen Huang summed it up: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” The stock is up 23.71% year to date, far behind that pace. So can NVIDIA hit $350 in 2027?
Why NVIDIA Shares Lag Its Own Earnings Growth
Over the past year, shares gained 29.49% while quarterly net income rose 125.9%. The worries behind that gap are real. Management noted “extreme pricing conditions in memory” and expects gross margin to bottom at 71% to 72% in Q4. Supply commitments jumped to $279B.
Guidance includes no China data center compute revenue, and days sales outstanding stretched to 60 days from 45. Management even admitted that “some will call this circular financing.”
Recent gains are modest: 1.23% in a week and 5.93% in a month. With…
