Nvidia's fundamentals remain robust with 117% revenue growth, though the stock faces volatility as investors weigh hyperscaler capex risks against the potential for long-term AI infrastructure dominance.
Nvidia's data center revenue grew 117% and management guided strong fiscal 2028 growth, outweighing near-term concerns about hyperscaler capex.
Nvidia shares trade at a 20x forward earnings multiple despite a 117% surge in Data Center revenue. With the Vera Rubin architecture in full production and hyperscaler capex projected to hit $1.3 trillion by 2027, analysts maintain a bullish consensus target of $327, citing strong fiscal 2028 earnings potential.
The main risks include a potential pause in hyperscaler capital expenditure, extreme memory pricing conditions, and the possibility that $279 billion in supply commitments could lead to stranded inventory.