Ahead of its fiscal second-quarter report, Shay Boloor, Chief Market Strategist at Futurum Equities, highlighted that Nvidia Corp. (NASDAQ:NVDA), trading at a “valuation discount,” is “fundamentally illogical.”
Citing a bullish research note from Raymond James, Boloor emphasized that Nvidia is trading at a notable discount relative to the broader S&P 500 despite robust earnings momentum, even as the chipmaker expands beyond graphics processors, with Raymond James projecting Nvidia could become the “world leader” in CPU revenue within several years.
Dissecting the ‘Fundamentally Illogical’ Multiples
According to the Raymond James analysis, Nvidia trades at less than 15 times calendar year 2027 GAAP estimated earnings, compared to roughly 19 times for the broader S&P 500 index.
Raymond James considers this disconnect unsustainable given Nvidia’s top-tier balance sheet and projected 20% sales and net income growth, prompting the investment firm to raise its stock price target to $352 from $330 while maintaining a Strong Buy rating.
