Nvidia Corporation (NVDA) reported impressive Q4 results on Wednesday, with sales of $68.12 billion and an EPS of $1.62, marking year-over-year increases of 73% and 82%, respectively. Despite this, the stock has dropped over 6% since the report, raising concerns about the sustainability of the AI boom and the company’s heavy reliance on a few major cloud providers for 90% of its revenue.
For fiscal Q1 2027, Nvidia projected revenue guidance of approximately $78 billion, surpassing analyst expectations of $72.8 billion, which would translate to at least 73% year-over-year growth. Additionally, EPS estimates for FY27 and FY28 have risen over 3% following the results, with projections showing an anticipated 60% increase in earnings for FY27, bringing the estimate to $9.13 per share.
Despite rising competition and concerns from investors about long-term AI spending, Nvidia’s forward price-to-earnings valuation is at its lowest in a decade, trading near the S&P 500 average and below the semiconductor industry average of 27X. These factors indicate strong ongoing demand for Nvidia’s offerings in a rapidly changing market.
