Fundstrat Head of Research Tom Lee is not backing down from his bullish call on Nvidia (NVDA). Even after a powerful rally and a blowout earnings report, Lee argues the stock is still cheap.
“The thing that stands out is that Nvidia’s multiple is still very low,” Lee told CNBC. “They’ve got these huge revisions. The stock hasn’t kept up. Now the P/E keeps contracting.”
NVDA opened at $227.98 on Friday. The stock’s 52-week range runs from $164.07 to a high of $236.54, giving it a market cap of $5.52 trillion.
Nvidia reported Q2 revenue of $96.22 billion, up 105.9% year over year. EPS came in at $2.22, topping the consensus estimate of $2.09 by $0.13.
The prior-year EPS was $1.05, which puts the year-over-year earnings growth into sharp perspective.
Nvidia also guided for approximately $108 billion in revenue for the current quarter. That kind of forward guidance has kept analyst sentiment firmly in the buy camp.
Fundstrat called Nvidia’s 100%-plus revenue growth “just astounding.” In an August 26 note, the firm said Nvidia’s 2028 revenue guidance “might help the stock push back to new all-time highs.”
Blue Zone Wealth Advisors increased its Nvidia position by 21.4% in Q2, bringing its total to 129,666 shares valued at roughly $25.9 million. Nvidia now makes up 4.5% of the firm’s portfolio, its seventh-largest holding.
Several other funds also added exposure. Longfellow Investment Management grew its position by 47.9% in Q2. Spurstone Advisory Services and Phillip James Consulting both opened new stakes during the period. Institutional investors and hedge funds collectively own 65.27% of Nvidia’s outstanding stock.
The consensus price target sits at $322.61, with 48 analysts rating it a Buy, two at Strong Buy, and four at Hold.
Nvidia’s board authorized an $80 billion share repurchase program in May. The company also declared a quarterly dividend of $0.25 per share, payable October 1 to holders of record on September 10.
On the flip side, insiders sold approximately $410.4 million worth of stock over the past 90 days. Director Stephen C. Neal sold 15,500 units at an average of $215.73 in early June. Director Mark A. Stevens sold 885,000 units at $210.17 in mid-June.
Rosenblatt Securities set the most aggressive price target on Nvidia this week at $390. UBS and Jefferies both hold $300 targets with Buy ratings.
The stock’s P/E currently stands at 28.82, with a PEG ratio of 0.41 and a beta of 2.23.
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