FY2027 EPS Estimates for NVIDIA Lifted by Erste Group Bank

Key Points

• Erste Group Bank raised NVIDIA’s FY2027 EPS estimate to $9.00 from $8.97 and projected FY2028 EPS of $12.70, though the FY2027 estimate remains slightly below the $9.10 consensus.
• NVIDIA’s latest quarter exceeded expectations, with EPS of $2.22 versus $2.09 expected and revenue of $96.22 billion versus $92.27 billion. Revenue grew 105.9% year over year, supported by strong AI-related demand.
• Analyst sentiment remains positive, with NVIDIA carrying a “Moderate Buy” consensus rating and an average price target of $322.61; however, insider selling, elevated valuation, supply constraints and lower margin expectations present risks.

NVIDIA Corporation (NASDAQ:NVDA - Free Report) - Erste Group Bank raised their FY2027 earnings per share (EPS) estimates for NVIDIA in a research note issued on Thursday, August 27th. Erste Group Bank analyst H. Engel now expects that the computer hardware maker will earn $9.00 per share for the year, up from their previous estimate of $8.97. The consensus estimate for NVIDIA's current full-year earnings is $9.10 per share. Erste Group Bank also issued estimates for NVIDIA's FY2028 earnings at $12.70 EPS.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company's quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.05 earnings per share.

Several other equities research analysts have also recently commented on the company. Barclays reissued an "overweight" rating on shares of NVIDIA in a report on Thursday, May 21st. Mizuho set a $315.00 price objective on NVIDIA and gave the company an "outperform" rating in a report on Thursday. Wedbush raised their target price on NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a research note on Thursday. Tigress Financial reaffirmed a "strong-buy" rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Finally, DZ Bank reiterated a "buy" rating on shares of NVIDIA in a research report on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, NVIDIA presently has an average rating of "Moderate Buy" and an average target price of $322.61.

NVIDIA Price Performance

NVIDIA stock opened at $217.55 on Monday. NVIDIA has a 52 week low of $164.07 and a 52 week high of $236.54. The stock has a market cap of $5.24 trillion, a price-to-earnings ratio of 27.50, a PEG ratio of 1.71 and a beta of 2.23. The company's 50-day moving average price is $208.09 and its two-hundred day moving average price is $200.85. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

Institutional Trading of NVIDIA

Hedge funds have recently bought and sold shares of the company. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the fourth quarter worth $26,000. Longview Financial Advisors Inc. acquired a new position in NVIDIA during the first quarter valued at $27,000. Montgomery Financial Services LLC acquired a new position in NVIDIA during the second quarter valued at $28,000. Longfellow Investment Management Co. LLC lifted its stake in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after acquiring an additional 67 shares in the last quarter. Finally, Langley Wealth Management LLC purchased a new stake in NVIDIA in the 2nd quarter worth about $34,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the transaction, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This represents a 11.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,900,500 shares of company stock worth $410,449,265 over the last 90 days. Insiders own 3.94% of the company's stock.

NVIDIA announced that its Board of Directors has approved a share buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

NVIDIA Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA's payout ratio is presently 12.64%.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA reported fiscal Q2 revenue of approximately $96.2 billion, up 106% year over year and ahead of Wall Street expectations. Data-center revenue rose 117% to $89 billion, while adjusted EPS of $2.22 also exceeded consensus. The results reinforced that hyperscaler AI spending remains robust. Nvidia rises after signaling longer AI spending runway
• Positive Sentiment: Management guided to roughly $108 billion in fiscal Q3 revenue and indicated that fiscal 2028 sales could grow about 70%, well above the roughly 45% growth analysts had modeled. The forecast has shifted the debate from whether AI demand is slowing to whether NVIDIA and its suppliers can build enough capacity. Nvidia's 70% growth forecast
• Positive Sentiment: Several analysts raised their NVIDIA price targets following the results, including Wedbush, Truist, RBC and JPMorgan. The upgrades reflect expectations for sustained Blackwell demand, the Vera Rubin product ramp and strong order visibility through fiscal 2028. Wedbush lifts Nvidia price target
• Neutral Sentiment: NVIDIA is reportedly pursuing a roughly $12.9 billion acquisition of open-source AI platform Hugging Face. The deal could expand NVIDIA’s software ecosystem and improve visibility into future AI workloads, but reports indicate terms may not be finalized and the valuation is high relative to Hugging Face’s revenue. Nvidia agrees to buy Hugging Face report
• Negative Sentiment: Investors are locking in gains after NVIDIA’s strong post-earnings rally. The stock’s elevated valuation and proximity to record levels make it vulnerable to short-term profit-taking even though fundamentals remain strong. Nvidia AMD Intel stocks slide as investors take profits
• Negative Sentiment: Gross-margin expectations are moving lower toward roughly 72%–73% as NVIDIA absorbs higher memory, packaging and infrastructure costs. Management also said supply constraints remain significant, potentially limiting how much demand can immediately translate into revenue and cash flow.
• Negative Sentiment: Broader market pressure is coming from a more hawkish Federal Reserve outlook, while NVIDIA’s decision to exclude China data-center compute revenue from its forecast underscores continuing export-control and geopolitical risks. Reports that the company paused some revenue-sharing arrangements with AI cloud providers also raise questions about financing and customer ROI. Nvidia pauses revenue-sharing deals

NVIDIA Company Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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