Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 6 May, 26 | NVDA | Buy | USD 200.93 | USD 211.0 | USD 222.0 | 5 days | Closed |
10.64%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers 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 or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
Increase in Data Center Revenue: USD 62.0 billion in Q4FY26 vs USD 35.4 billion in Q4FY25
Increase in Net Income: USD 43.0 billion in Q4FY26 vs USD 22.1 billion in Q4FY25
Increase in Non-GAAP Operating Expenses: USD 5.1 billion in Q4FY26 vs USD 3.4 billion in Q4FY25
Increase in GAAP Operating Expenses: USD 6.8 billion in Q4FY26 vs USD 4.7 billion in Q4FY25
Key investment risk for NVIDIA Corporation includes potential slowdown in hyperscaler AI spending, export restrictions related to China, increasing competition in AI accelerators and networking infrastructure, and execution risks associated with scaling next-generation AI platforms and supply chain capacity
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 200.93 | 181.0 | 211.0 | 222.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
AI Infrastructure Leadership Drives Record Revenue Growth: NVIDIA Corporation delivered a record Q4FY26 performance, supported by accelerating demand for AI infrastructure, inference computing, and networking solutions. Revenue increased 73% YoY to USD 68.1 billion in Q4FY26 from USD 39.3 billion in Q4FY25, marking the largest sequential revenue expansion in the company’s history. The company benefited from strong enterprise and hyperscaler spending on accelerated computing infrastructure, while continued deployment of Blackwell systems and growing adoption of AI inference workloads significantly expanded customer demand across cloud providers, sovereign AI projects, and AI model developers. The company also highlighted that Data Center revenue has increased nearly 13x since the emergence of ChatGPT, reflecting NVIDIA’s dominant positioning in the global AI ecosystem.
Data Center and Networking Segment Deliver Exceptional Momentum: The Data Center business remained the primary growth engine for NVIDIA during Q4FY26. Data Center revenue increased to USD 62.0 billion during the quarter, driven by sustained demand for Blackwell and Blackwell Ultra platforms, as customers accelerated investments in AI training and inference infrastructure. Networking revenue surged to USD 11.0 billion in Q4FY26 from USD 3.0 billion in Q4FY25, supported by strong adoption of NVLink, Spectrum-X Ethernet, and InfiniBand technologies. NVIDIA also stated that Grace Blackwell systems represented nearly two-thirds of Data Center revenue during the quarter, reflecting the rapid transition toward rack-scale AI computing infrastructure. The company further strengthened its leadership in AI networking, positioning itself as one of the largest networking businesses globally.
Expanding AI Ecosystem and Accelerating Inference Demand: NVIDIA continued to deepen partnerships with major frontier AI model developers, including OpenAI, Meta, Anthropic, and xAI, reinforcing its ecosystem dominance across generative AI and agentic AI applications. Management highlighted that the rapid adoption of coding agents, enterprise AI assistants, and multimodal AI models has materially increased token generation demand, directly translating into higher compute requirements and infrastructure spending. The company also emphasized that AI inference workloads are increasingly becoming a major revenue driver, with NVIDIA’s architecture delivering superior performance per watt and lower cost per token compared to previous generations. Strong adoption of CUDA, TensorRT, NVLink, and AI networking solutions further strengthened NVIDIA’s competitive moat within the AI infrastructure market.
Margin Expansion and Operating Leverage Support Profitability: NVIDIA reported meaningful profitability expansion during Q4FY26 as operating leverage and favorable product mix improved earnings performance. GAAP gross margin increased to 75.0% in Q4FY26 compared with 73.0% in Q4FY25, while non-GAAP gross margin improved to 75.2% from 73.5% over the same period. Operating income surged 84% YoY to USD 44.3 billion, reflecting improved scale efficiencies and stronger contribution from high-margin AI infrastructure products. Net income rose sharply to USD 43.0 billion compared with USD 22.1 billion in the prior-year quarter, while diluted EPS nearly doubled to USD 1.76. Management noted that improved Blackwell cost structure and lower inventory provisions contributed to margin expansion during the quarter.
Robust Cash Flow Generation and Capital Deployment: NVIDIA continued to generate exceptionally strong cash flows amid rapid revenue expansion. Free cash flow increased to USD 34.9 billion in Q4FY26 from USD 15.5 billion in Q4FY25, while net cash provided by operating activities rose to USD 36.2 billion. The company continued investing aggressively in supply chain capacity, AI ecosystem expansion, and next-generation product development while simultaneously returning capital to shareholders through dividends and share repurchases. During FY26, NVIDIA returned USD 41 billion to shareholders, representing approximately 43% of annual free cash flow generation. The company also significantly increased inventory commitments and long-term supply agreements to support expected demand growth extending into calendar year 2027.
Strategic Innovation Pipeline Strengthens Long-Term Outlook: NVIDIA continued to expand its long-term AI infrastructure roadmap through ongoing investments in next-generation computing architectures. The company unveiled the Rubin platform, which includes new GPUs, CPUs, networking switches, and DPUs designed to significantly improve training efficiency and reduce inference costs compared with Blackwell systems. NVIDIA also highlighted growing traction in sovereign AI infrastructure, robotics, autonomous driving, and physical AI applications. Sovereign AI revenue reportedly exceeded USD 30 billion during FY26, while physical AI-related activities contributed more than USD 6 billion in annual revenue. Additionally, the company strengthened its AI ecosystem through partnerships across industrial automation, robotics, manufacturing, and cloud computing platforms, supporting long-term diversification opportunities beyond hyperscale AI demand.
Positive Outlook Supported by Continued AI Spending Momentum: Management provided a strong outlook for Q1FY27, forecasting revenue of approximately USD 78.0 billion, supported primarily by continued Data Center expansion and ongoing Blackwell adoption. NVIDIA expects AI infrastructure spending to remain robust as hyperscalers, enterprises, sovereign entities, and AI developers continue scaling AI factories and inference workloads globally. The company also stated that demand visibility now extends into calendar year 2027, supported by long-term supply commitments and accelerating enterprise adoption of generative and agentic AI applications. While China-related restrictions remain an uncertainty, NVIDIA continues to benefit from strong global AI infrastructure demand and expanding adoption across diversified end markets.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to NVIDIA Corporation (NASDAQ: NVDA) at the current market price of USD 200.93, as on 06 May,2026 at 6:59 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| NVDA NVIDIA Corporation |
0.47 0.23% | 203.28 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
7.33 1.98% | 378.16 | 78.55 | 35.84 | 27.93 | 23.69 | 28.47 | 52.08 |
| TSM Taiwan Semiconductor Manufacturing |
3.93 0.99% | 402.30 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
7.81 1.58% | 503.57 | 108.58 | 40.98 | 13.39 | 7.12 | 12.75 | 60.70 |
| QCOM Qualcomm Incorporated |
-1.46 0.85% | 170.32 | 28.37 | 17.95 | 5.27 | 8.29 | 5.36 | 18.39 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 6, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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