Opinions Andrew Pyle
NVIDIA CorporationNVDAWATCHMay 28, 2025
Andrew PyleStock price when the opinion was issued
As of Sep 04, 2026. Market Open.
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Critics say Nvida is making investments to keep all their balls in the air -- making money by paying their customers, which is called circular financing. It's considered a sign of danger, because we saw this happen leading up to the Dotcom collapse. He strongly disagrees. NVDA's CEO knows that the companies that are using his chips are starting to make a ton of money, so why not back them up? The Dell CEO confirmed that to him.
We saw NVDA jump yesterday after another quarter of blowout earnings. They surprised on both the top and bottom line. EPS growth rate of 111% versus this time last year! Sales growth of 106%. Question is whether that's going to be sustainable long-term?
Not that it won't continue to be innovative and profitable, but some of these tech giants in the AI space have analyst expectations set very high.
Is probably trading at 15x forward PE as shares keep getting cheaper and cheaper. He doesn't see the party ending soon. Happy to stick with it.
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Premium contentNvidia demonstrated that the race for AI infrastructure continues to accelerate, posting record figures. It reached $96.2 billion, representing a massive year-over-year increase of 106%. This remains the company's primary growth driver, contributing $89 billion (92.7% of total sales) thanks to strong demand for servers and complex AI chip architectures. Social media mentions are up 230% in the past 24h.
Premium contentWe again reiterate NVDA as a TOP PICK. Following the recent release showing a 106% revenue increase and a management view of a 70% increase next year, along with a forward PE ratio at the lowest level for the stock since 2019, it is clear the demand for their products is still rising. We continue to recommend a stop at $200, looking to achieve $292 -- upside potential of 28%. Yield 0.1%
(Analysts’ price target is $328.93)
He will watch to see if the monetizing of this $1.5 trillion infrastructure will happen. It's still early innings. Some say this is like Cisco in 2000, but NVDA is a high value-added product. NVDA will maintain and increase pricing power. NVDA is the centre of the AI trade.
Over 8 quarters, it's fallen 6 times on earnings. So, they need a blow-out quarter. Q3 guidance is critical. NVDA has telegraphed they will raise prices 15% to meet expectations.
Joe TerranovaThere's little chance their earnings will disappoint. There's a 75% chance they will meet expectations and talk about a good Q3. They could talk about their next-generation chip, too. All this could lift the stock after being sideways. A dividend won't move the needle and it's premature. From October 2022 to October 2025, NVDA rose 1,700%, but much slower in the past year. But this could be a base to accelerate again; it's trading at its 100-day moving average.
Continues to improve, seeing higher highs and higher lows. Earnings will be a really good tell for the market. Semis have really come under pressure. Whatever NVDA does after tonight, the broader semis will follow suit. We know that it'll print great numbers, but where will the guidance fit in with expectations and is that already priced in?
Their earnings in recent years have been spectacular, but the stock price is waiting for earnings to catch up. 60-70x PE is unsustainable. The stock has been flat in recent months, but the PE has been declining. Its forward PE is in the low-20s. Is concerned that a lot of their business in concentrated in hyperscalers like Meta and Microsoft; if they reduce their capex spend, it will impact NVDA's profits.
Expectations aren't sky-high. He's looking at this circular financing, and seeing if Nvidia is willing to share what this really means. While revenues are growing massively, it's not clear whether there's a huge profit yet in terms of this buildout.
Won't easily be toppled from the throne on which it finds itself. Every time someone thinks they can do that, it comes out with a new version of the chip that's even better. Definitely the bellwether on demand going forward. Any sign of negativity in the comments tonight won't play well for any name in this arena.
He has a coin to flip on what the results are going to be. The interesting thing about today's report is that he feels the bar's being set a bit lower than in previous quarters. We're now in the thick of uncertainty about where the economy is going over the next 6 months after the impact of Trump's policies. We've heard cautionary whispers coming out, so analysts may be looking for some negativity in the comments tonight.
If results aren't as bad as we think, stock could see a nice little pop. Stock's consolidated after a nice rebound from April. It comes down to where's the market, where's the bar been truly set, and what does the CEO say?
Personally, he thinks the street's prepared for some bad news tonight. If it gets that, but nothing worse, it doesn't mean the market will crater on this stock. There will be nagging concerns: that we've priced too much into the stock, we've priced in too much demand, what's the competition going forward, are there viable and cheaper options coming out of other countries like China? If so, investors will be prepared to pull back. But it's not over yet for the stock; it's still the market leader and a solid company going forward.