Major Bank Ratings | CLSA: Nvidia's Revenue Expected to Grow 71% Year-on-Year Last Quarter, Rated "High Conviction Outperform"

Glonghui, February 25th｜CLSA released a report stating that Nvidia's stock price has risen by about 7% to 8% in the past six months, which is lackluster compared to other foundational artificial intelligence stocks such as TSMC (up 73%) and memory-related stocks (up 180% to 300%). Nvidia is currently trading at a forecasted FY2027 P/E ratio of 26 times. CLSA believes Nvidia offers attractive value, and the capital expenditures announced by hyperscale data centers confirm that AI infrastructure construction is still accelerating. The firm believes the upcoming earnings announcement provides an opportunity to revitalize the market narrative. The firm expects Q4 FY2026 revenue ending January this year to be $67.2 billion, a year-on-year increase of 71%, higher than the upper end of the guidance of $66.3 billion. Although the current forecast for Q1 FY2027 ending April is $72.7 billion, a year-on-year increase of 65%, any guidance equal to or above $75 billion will reinforce the message of accelerating revenue growth. The firm gives Nvidia a "high conviction outperform" rating with a target price of $300.