By Anton Ladnyi, CFA · ex-Goldman Sachs · ex-J.P. MorganPublished Updated
NVDA — Q2 FY2027 revenue $96.22B (+106% YoY) beat the $92.07B consensus, Data Center $89.0B (+117% YoY, accelerating from Q1's 92%), non-GAAP EPS $2.22 beat ~$2.09-2.10 consensus; Q3 FY2027 guide $108B (+/-2%) still assumes zero China Data Center revenue, Vera Rubin set to reach ~20% of Data Center revenue in Q3, and management gave an unusually early FY2028 revenue growth outlook of ~70% YoY; shares rose ~4% on the print (+4.4% further after-hours), breaking a streak of declines after the prior four earnings reports.
Quantitative model rating — not individualized investment advice.
How Is This Rating Calculated?
A.L. Capital Advisory Equity Composite model · calculated 2026-09-19. Four calculation steps, in order — steps 1, 2 and 4 are rules-based; step 3 is a disclosed qualitative analyst overlay mapped to a fixed numerical scale:
1. Margin of safety → quantitative grade
NVDA's margin of safety is +23.15% (base case $289 vs. price $222.27). Margin of safety here is defined as (fair value − price) / fair value — this is the formula the quant grade below is actually assigned from. It is not the same figure as the gauge's "Upside to Base" pill above, which uses (fair value − price) / price and will read a larger number for the same inputs. For comparison, the pure (unblended) DCF output alone implies a margin of safety of -29.69% (pure DCF base $171 vs. price $222.27) — the gap between this and the +23.15% blended figure above reflects the analyst-consensus blend.
Blended valuation margin-of-safety bands
Margin of safety
Quant grade
Score
MOS > 20.00%
Strong Buy
5.0
10.00% < MOS ≤ 20.00%
Buy
4.0
−10.00% < MOS ≤ 10.00%
Hold
3.0
−20.00% < MOS ≤ −10.00%
Reduce
2.0
MOS ≤ −20.00%
Avoid
1.0
2. Auto fundamental penalty
No fundamental red flags triggered · total: +0.0
Automatic fundamental-penalty rules
Rule
Threshold
Penalty
P/E extreme
Forward (or trailing) P/E > 80x
−1.0
P/E elevated
Forward (or trailing) P/E 50–80x
−0.5
Earnings deterioration, significant
Earnings growth < −20%
−1.0
Earnings deterioration, mild
Earnings growth −5% to −20%
−0.5
Stagnant top-line
Revenue growth < 3%
−0.5
Unsustainable dividend
Payout ratio > 120%
−0.5
Rules are cumulative (multiple can fire on the same ticker) and purely mechanical — no analyst judgment is involved in step 2.
3. Thesis conviction modifier
Analyst conviction: high · modifier: +0.60. This is a qualitative analyst judgment on the written thesis, mapped to a fixed numeric modifier below — it is not algorithmically derived from a measurable indicator.
Analyst-conviction modifier scale
Conviction level
Modifier
Very High
+1.00
High
+0.60
Medium
+0.00
Low
-0.60
Very Low
-1.00
General guidance for the assigning analyst (not an algorithmic rule — conviction is assigned by editorial judgment on the written thesis, not computed): Very High/High — multiple thesis pillars confirmed by the most recent reported quarter, no unresolved red flags. Medium — mixed evidence, or a thesis not yet differentiated enough to lean either direction. Low/Very Low — one or more thesis pillars deteriorating, or a material data-quality concern. Assigned and reviewed each time the underlying thesis is updated (see the thesis "last updated" date on this page).
This is the exact formula the model runs — not a post-hoc explanation. Source: composite_grade.py, A.L. Capital Advisory Equity Composite.
NVDA Price Target & Rating
NVDA's quantitative grade is Strong Buy, with moderate downside risk (CVaR -12.2%), and quality metrics (net margin 64%, ROE 117%). NVIDIA Corporation (NVDA) trades at $222.27 with a Strong Buy composite rating: a trailing P/E of 27.7x at a 13% discount to sector median, net margins of 63.7%, a blended fair-value range of $165–$448 suggesting a +23% margin of safety, beta 2.22 (highly aggressive risk profile).
What Is NVDA's DCF Intrinsic Value and Blended Fair Value Range?
NVDA's blended fair-value range is $165–$448 (base case $289), against a current price of $222.27.
NVDA blended fair-value gauge — bear case $165, base case $289, bull case $448, current price $222.27.
Price & DCF data as of
How Does NVDA's Margin of Safety Change as the Price Moves?
Drag to simulate NVDA's price moving between the blended bear ($165) and bull ($448) fair-value anchors — left for a price fall, right for a rise — and see how the margin of safety vs A.L. Capital Advisory's $289 blended base-case fair value changes. Starting point: the page's as-of price of $222.27 on 2026-09-19.
DCF Assumptions
Two-stage earnings-based DCF on forward EPS of $15.68 (Yahoo Finance forwardEps: provider-aggregated next-fiscal-year consensus estimate, not a fixed trailing-12-month window): explicit 5-year forecast at the stage-1 growth rate below, discounted at the CAPM cost of equity, plus a Gordon Growth terminal value at the terminal growth rate, also discounted at the CAPM cost of equity. This model discounts projected EPS — an equity-level metric — directly, not free cash flow, so the cost of equity is the theoretically correct discount rate; this is not a debt-weighted WACC (no cost of debt or capital-structure weighting is applied). Source: A.L. Capital Advisory DCF engine (api.py).
DCF assumptions by scenario
Input
Bear
Base
Bull
Stage-1 (near-term) growth
6.30%
14.00%
21.00%
Terminal growth
3.00%
3.00%
3.00%
CAPM cost of equity (discount rate)
18.00%
17.19%
15.81%
Forecast horizon
5 years
5 years
5 years
CAPM cost of equity = risk-free rate (5.00%, a live 10-year Treasury yield (Yahoo Finance ^TNX) fetched at page-generation time, 2026-09-19T08:50:54+00:00 UTC) + beta (2.22) × 5.5% equity risk premium, floored at 6% and capped at 18%. Stage-1 growth is a sector-level base rate (bear/bull apply 0.45x/1.50x multipliers); terminal growth is held constant across scenarios. Bear/bull cost of equity applies a ±8% relative adjustment to the base rate, clamped to the same 6–18% band.
The DCF output above is not the final intrinsic value shown elsewhere on this page. It is blended with the Wall Street analyst consensus price target to avoid extreme single-model divergence, weighted by analyst coverage depth (58 analysts covering this stock → 25.00% DCF / 75.00% consensus). The blended figure is the intrinsic value used for margin-of-safety and the composite rating.
DCF-to-intrinsic-value blend by scenario
Scenario
Pure DCF value
Analyst target used
Blended intrinsic value (displayed)
Bear
$121.84
$180.00
$165.46
Base
$171.38
$328.49
$289.21
Bull
$246.48
$515.00
$447.87
Blended value = (25.00% × pure DCF) + (75.00% × analyst target). Bear/bull scenarios blend against the analyst low/high target rather than the mean.
Analyst-coverage-to-consensus-weight tiers
Analyst coverage
Weight
0–1 analysts
0.00% consensus / 100.00% DCF
2–4 analysts
40.00% consensus / 60.00% DCF
5–19 analysts
65.00% consensus / 35.00% DCF
20+ analysts
75.00% consensus / 25.00% DCF
The consensus weight is a fixed step function of analyst coverage depth (above), not adjusted for target age, dispersion, or outliers — the mean/low/high analyst targets are used as reported by the data provider with no filtering.
Key Takeaways
Valuation: Strong Buy grade — P/E 27.7x — blended fair-value range $165–$448 implies +23% margin of safety
Risk: CVaR -12.2% (95th percentile, 1-month) indicates moderate tail exposure; beta of 2.22 amplifies broad market moves in both directions
Strengths: Quality 5.0/5, Size 5.0/5, 64% net margin, 117% ROE dominate the factor profile
Catalyst: Q3 FY2027 earnings expected ~November 2026 — the $108B guide (ex-China) must be met or beaten, and the first meaningful read on the hyperscaler capex re-acceleration into Q4/FY2028 that management flagged on the Q2 call.
Bear catalyst: Guidance given at the Q3 print implies growth decelerating meaningfully below the ~70% FY2028 framing management just gave; gross margin guidance falls below 73%; a hyperscaler publicly signals AI capex reduction; or custom ASIC penetration data shows a step-change shift away from merchant GPUs.
NVDA — Quantitative SnapshotSeptember 2026
RatingStrong Buy
Price$222.27
Why Strong BuyHigh-quality business at a reasonable valuation with constructive earnings momentum
Tail riskCVaR -12.2% over one month at the 95th percentile
Blended fair-value range$165–$448 blended fair-value range; margin of safety +23%
Best useCore mega-cap Technology holding — not a source of diversified sector exposure
Next watchEarnings delivery consistency and margin trajectory
How Does NVDA Score on the Five-Factor Quantitative Model?
NVDA's composite five-factor score is 3.8/5, led by Quality (5.0/5) and weakest on Volatility (2.0/5).
NVDA five-factor radar — Value 4.0, Quality 5.0, Momentum 3.0, Volatility 2.0, Size 5.0 (out of 5).
Value
4.0 / 5
Quality
5.0 / 5
Momentum
3.0 / 5
Volatility
2.0 / 5
Size
5.0 / 5
NVDA Five-Factor Quantitative Scores
Factor
Score
Value
4.0 / 5
Quality
5.0 / 5
Momentum
3.0 / 5
Volatility
2.0 / 5
Size
5.0 / 5
What Is NVDA's AI-Era Durability and Disruption Risk?
AI Disruption Risk: Moderate
Nvidia's durability rests on a Blackwell franchise that is sold out into 2027, with fiscal 2026 data-center revenue of $193.7 billion (roughly 90% of total sales) backed by an estimated $350 billion of unfulfilled purchase commitments and gross margins holding near 75% even through a major architecture transition. The credible disruption risk is not a generic AI slowdown but hyperscaler in-sourcing: Google's TPUs, Amazon's Trainium, Microsoft's Maia and Meta's MTIA are steadily taking inference workloads in-house, while AMD's MI400 line -- anchored by OpenAI's 6-gigawatt commitment and Meta's multi-gigawatt Instinct deal -- has become a credible second source for the first time. The metric to watch is the mix of custom-ASIC versus merchant-GPU capacity at the top four hyperscalers each quarter; if internal silicon and AMD start taking share of net-new capacity rather than just incremental capacity, durability should be marked down even as absolute Nvidia revenue keeps growing.
CleanNVDA's Capital Consumption Gap is within its normal range: implied asset life 5.8 years in FY2026, 1.2 years shorter than FY2025.
Key Metrics
NVDA Key Metrics — NVIDIA Corporation 2026
Metric
Value
Current Price
$222.27
P/E Ratio (TTM)
27.7x
Forward P/E
14.2x
PEG Ratio
11.09x
P/S Ratio
17.7
EV/EBITDA
26.5
Beta
2.22
Net Margin
63.7%
ROE
117.2%
Debt/Equity
17.0%
Dividend Yield
0.46%
CVaR (95%, 1M)
-12.2%
Market Cap
$5.37T
1-Month CVaR Methodology
The 1M CVaR-95 figure shown in Key Metrics, the peer comparison table and this page's hero card is computed as follows:
Lookback: most recent 1 year of daily prices.
Return input: daily log returns on dividend/split-adjusted close prices.
Confidence level: 95% (worst 5% of the resulting rolling-month observations).
Quantile convention: floor-based cutoff — the worst floor(N × 0.05) rolling-month observations (minimum 1), not a rounded or interpolated percentile.
CVaR: arithmetic mean of that worst-5% tail, expressed as a percentage.
Corporate actions: reflected via adjusted-close pricing (dividends and splits are accounted for).
1M CVaR-95 by lookback window
Method
1M CVaR-95
Trailing 1-year historical
-12.2%
Trailing 3-year historical
-17.0%
Trailing 5-year historical
-28.0%
The 1-year figure is what appears elsewhere on this page. Because it is built from overlapping 21-day windows over a single year, it reflects roughly the last ~11 non-independent tail events and is sensitive to the specific market regime of that year — treat it as a trailing-window historical estimate, not a structurally stable long-run risk parameter. The 3- and 5-year figures use the same methodology over longer, more regime-diverse histories.
This is a separate calculation from the 1-Day VaR/CVaR shown in the Tail Risk Profile chart below, which uses raw (non-overlapping) daily returns rather than rolling monthly sums — see that chart's own methodology note for the daily-horizon convention.
Tail Risk Profile
Historical Simulation · Daily Log Returns
NVDA — Daily Return Distribution
NVIDIA Corporation · 250 trading days · CVaR illustrated on real data
Sep 2025 – Sep 2026
Daily log returns
95%
-4.04%
1-Day VaR · 95%
95th-percentile loss threshold
-4.76%
1-Day CVaR · 95%
Avg loss in tail
13
Days in tail
of 250 sessions
250
Daily returns
Sep 2025 – Sep 2026
Historical VaR uses the nearest-rank convention: the worst observation within the tail (empirical (1−confidence) fraction of trading days). Historical CVaR is the arithmetic mean of all observations at or below that VaR threshold — so VaR is always included inside the CVaR tail, not one observation outside it.
Anton Ladnyi, CFA · A.L. Capital AdvisoryUpdated 2026-09-19
Rating Rationale
NVDA — Q2 FY2027 revenue $96.22B (+106% YoY) beat the $92.07B consensus, Data Center $89.0B (+117% YoY, accelerating from Q1's 92%), non-GAAP EPS $2.22 beat ~$2.09-2.10 consensus; Q3 FY2027 guide $108B (+/-2%) still assumes zero China Data Center revenue, Vera Rubin set to reach ~20% of Data Center revenue in Q3, and management gave an unusually early FY2028 revenue growth outlook of ~70% YoY; shares rose ~4% on the print (+4.4% further after-hours), breaking a streak of declines after the prior four earnings reports.
Investment Thesis
↑ Bull Case
$96.22B Q2 FY2027 revenue (+106% YoY, +18% QoQ) beat the $92.07B consensus by ~4.5%; non-GAAP EPS $2.22 beat the ~$2.09-2.10 consensus, and GAAP diluted EPS was $2.46 on $59.7B GAAP net income (+126% YoY) — the fifth consecutive quarter of topping Street estimates.
Data Center revenue of $89.0B grew 117% YoY (vs. 92% YoY growth in Q1 FY2027), with Data Center Networking up 138% YoY — the growth rate accelerated rather than decelerated, and the infrastructure buildout is broadening beyond chips into networking.
Q3 FY2027 guidance of $108B (+/-2%) — again assuming zero China Data Center compute revenue — implies another sequential step-up; management additionally gave a preliminary FY2028 revenue growth outlook of ~70% YoY, an unusually early disclosure that signals confidence in multi-year visibility rather than just the next quarter.
Vera Rubin is guided to reach ~20% of Data Center revenue already in Q3 FY2027, with Jensen Huang stating supply exists for 70% growth while 'demand is much higher than that' — the ramp is arriving on schedule and immediately at meaningful scale, not a token contribution.
$26.0B returned to shareholders in the quarter ($20B buybacks, $6B dividends), 60% of free cash flow returned year-to-date against a 50%+ target, with $99.0B still remaining under the buyback authorization — capital return continues to scale alongside growth.
Combined Blackwell/Vera Rubin purchase-order visibility has been raised from $500B (late 2025) to $1 trillion through 2027 (Jensen Huang, GTC March 2026) — a backlog large enough that even a meaningful demand air-pocket would leave multiple years of contracted revenue intact.
Shares rose ~4% on the print and a further ~4.4% in after-hours trading during the call — breaking the streak of post-earnings declines flagged as a bear point in the prior update; the 'beat without re-rating' pattern has broken, not just a one-quarter analyst-target chase.
↓ Bear Case
China Data Center compute revenue remains structurally excluded from guidance for a second consecutive quarter ($91B Q2 guide and now $108B Q3 guide both assume zero) — the largest single geographic overhang has not moved, and any further escalation rather than resolution remains a live risk this print did not address.
Non-GAAP gross margin of 75.0% and Q3 guidance of 74.0% (+/-50bps) sit below the prior update's 76%+ bull-trigger bar — margin is holding, not expanding, even as Vera Rubin ramps into the mix, worth tracking given the platform transition should eventually be margin-accretive if the ramp goes well.
Sequential Q3 guide growth (~12%, $96.2B to $108B) is a deceleration from Q2's own 18% sequential growth — management frames Q4/FY2028 hyperscaler re-acceleration as the next leg higher, meaning the bull case now depends on a re-acceleration that hasn't happened yet rather than a trend already in hand.
The unusually early ~70% FY2028 revenue growth disclosure, while bullish on its face, is also a lower growth rate than the ~106% YoY the company just posted — management is effectively guiding the market to expect deceleration from here, and the stock's ability to hold a premium multiple depends on whether 70% clears whatever the market embeds by then.
Custom ASIC competition (Google TPU, Amazon Trainium3, Meta MTIA, Microsoft Maia) and hyperscaler capex concentration remain unresolved structural risks from the prior update — nothing in this print retires either concern, it simply shows demand still outrunning supply for now.
What Changes the Rating
↑Catalyst:Q3 FY2027 revenue exceeds $112B (vs. $108B guide); gross margin holds at or above 74.5%; Vera Rubin's Data Center revenue share expands beyond the ~20% Q3 guide; any China Data Center compute policy easing that isn't yet reflected in guidance.
↓Model downgrade conditions:Guidance given at the Q3 print implies growth decelerating meaningfully below the ~70% FY2028 framing management just gave; gross margin guidance falls below 73%; a hyperscaler publicly signals AI capex reduction; or custom ASIC penetration data shows a step-change shift away from merchant GPUs.
Anton’s personal note
The model points to a strong buy and the DCF math backs it — there is real margin of safety here, which is rare at this stage of the cycle. The DCF gap is striking — the model sees 30% upside, and market consensus is not pricing it. I watch for the catalyst that closes that gap: an earnings beat that resets forward estimates, a sector re-rating, or a margin inflection. Without a visible catalyst, valuation gaps can stay wide longer than logic suggests they should. The setup that would make me more positive is a quarter that confirms the operating leverage story. The setup that would make me cautious is any signal that consensus estimates are getting ahead of fundamentals.
— Anton Ladnyi, CFA
Earnings History
NVDA Earnings History — EPS Surprise Rate 2026
Quarter
EPS Est. (consensus)
EPS Actual (adjusted, consensus basis)
Surprise
Q2 FY2027
$2.09
$2.22
+6.2% ✓
Q1 FY2027
$1.77
$1.87
+5.5% ✓
Q4 FY2026
$1.54
$1.62
+5.3% ✓
Q3 FY2026
$1.26
$1.30
+3.5% ✓
EPS Actual is on the same adjusted/non-GAAP basis as the consensus estimate it is compared against (excludes one-time items, consistent with how Wall Street EPS estimates are typically constructed) — it will generally differ from the company's GAAP diluted EPS as reported in its official financial statements. Verify the GAAP figure against the issuer's original earnings release if that basis is what you need.
How Has NVDA Performed vs. Wall Street EPS Estimates?
NVDA has beaten consensus EPS estimates in 4 of the last 4 reported quarters (100%).
NVDA quarterly EPS — estimate vs. actual, 4 most recent reported quarters, 100% beat rate.
Earnings Projections
NVDA Forward EPS Consensus Estimates 2026
Quarter
EPS Est.
YoY EPS
Analysts
Q3 FY2027
$2.47
+90.0%
43
Q4 FY2027
$2.74
+69.3%
41
Q1 FY2028
~$1.87
+0.0%
51
Q2 FY2028
~$3.92
+76.6%
53
~ Estimated from annual consensus — not a direct analyst survey
What Are Wall Street's EPS Estimates for NVDA?
Wall Street's next-quarter consensus EPS estimate for NVDA is $2.47.
NVDA consensus EPS estimates, next quarter $2.47, 4 quarters shown.
Revenue growth × exit multiple (editorial, not mechanically reproducible from disclosed inputs) · hover each scenario for detail · current price $222.27
▼
Bear Case
$140
-37.0%
Implied NTM P/E: 12.7x (target ÷ next-4Q consensus EPS — distinct from the exit multiple below, which is applied to a later-year EPS estimate)
30% revenue CAGR · 20x exit multiple
◆
Base Case
$340
+53.0%
Implied NTM P/E: 30.9x (target ÷ next-4Q consensus EPS — distinct from the exit multiple below, which is applied to a later-year EPS estimate)
65% revenue CAGR · 40x exit multiple
▲
Bull Case
$450
+102.5%
Implied NTM P/E: 40.9x (target ÷ next-4Q consensus EPS — distinct from the exit multiple below, which is applied to a later-year EPS estimate)
85% revenue CAGR · 55x exit multiple
How Correlated Is NVDA With Its Sector Peers?
4 of 10 peer pairs correlated above 0.60, indicating partial historical diversification — some pairs move together closely enough to blunt the benefit of holding both.
NVDA pairwise correlation heatmap across 5 peers — 4 of 10 pairs above 0.60.
4 of 10 peer pairs correlated above 0.60, indicating partial historical diversification — some pairs move together closely enough to blunt the benefit of holding both.
Extended Analysis — Buy, Hold or Sell? Risk Factors. Portfolio Fit.
Is NVDA a buy, hold, or sell?
NVDA carries a quantitative grade of Strong Buy. At a trailing P/E of 27.7, the stock trades at a 13% discount to the Technology sector median of 32.0x. Our two-stage, EPS-based DCF model produces a pure model range of $122–$246. After blending with Street consensus targets, the displayed fair-value range is $165–$448 — implying a +23% margin of safety vs. blended base fair value at the current price of $222.27. The width of the range reflects genuine uncertainty in the terminal growth rate assumption: the correct framework is a probability-weighted distribution over scenarios, not a single point estimate. See the DCF valuation framework for full methodology.
NVDA has beaten consensus estimates in 100% of the last 4 reported quarters, signalling strong execution consistency. The most recent quarter delivered a 6.2% earnings surprise. Analyst estimate revisions are trending upward.
What are NVDA's key risk factors?
With a beta of 2.22, NVDA exhibits a highly aggressive risk profile relative to the broad market. The 95th-percentile CVaR of -12.2% on a one-month horizon should inform position sizing directly: at a 10% portfolio weight, this standalone tail outcome corresponds to approximately 1.2% of portfolio value before accounting for correlations with other holdings — not a marginal portfolio CVaR contribution, which depends on the full covariance structure. Net margins of 63.7% are significantly above the Technology sector average of 22%, reflecting durable pricing power. Return on equity of 117.2% indicates highly efficient capital allocation. The balance sheet is conservatively leveraged at 17% debt-to-equity.
A put/call ratio of 0.89 indicates roughly balanced sentiment in the options market. Implied volatility of 30.9% is below realized volatility of 44.6%, potentially making options relatively cheap. Insiders have been net sellers to the tune of $3477.3M over the disclosed transactions from 2025-03-03 to 2026-09-09. While routine dispositions are common, the magnitude bears watching. Short interest is low at 1.3% of float, suggesting limited bearish conviction.
How does NVDA fit in a diversified portfolio?
At typical HENRY portfolio weights — 10–20% of the equity allocation — NVDA carries a beta of 2.22, meaning it amplifies broad market moves proportionally. The appropriate weight is not a function of conviction alone, but of the full covariance structure across all holdings. See the Ledoit-Wolf covariance framework for the methodology behind these calculations.
Among closely correlated names, NVDA shows the strongest co-movement with TSM (0.62), AVGO (0.53), AMD (0.46). Investors seeking diversification should note these correlation dynamics when constructing multi-asset portfolios.
True portfolio risk is a function of the full covariance structure across all holdings — not individual stock metrics. The Portfolio Health Check quantifies this at the portfolio level: it surfaces hidden concentration, marginal CVaR contributions, and the degree to which your overall allocation deviates from an optimal risk-adjusted mandate. The NVDA analysis here is a single node in that larger structure.
For analysis of the structural AI infrastructure capex cycle driving demand for NVDA — see our thematic deep-dive on the AI capex cycle.
Investor FAQ
What is NVDA's AI-Era Durability & Disruption Risk Score?
Nvidia's durability rests on a Blackwell franchise that is sold out into 2027, with fiscal 2026 data-center revenue of $193.7 billion (roughly 90% of total sales) backed by an estimated $350 billion of unfulfilled purchase commitments and gross margins holding near 75% even through a major architecture transition. The credible disruption risk is not a generic AI slowdown but hyperscaler in-sourcing: Google's TPUs, Amazon's Trainium, Microsoft's Maia and Meta's MTIA are steadily taking inference workloads in-house, while AMD's MI400 line -- anchored by OpenAI's 6-gigawatt commitment and Meta's multi-gigawatt Instinct deal -- has become a credible second source for the first time. The metric to watch is the mix of custom-ASIC versus merchant-GPU capacity at the top four hyperscalers each quarter; if internal silicon and AMD start taking share of net-new capacity rather than just incremental capacity, durability should be marked down even as absolute Nvidia revenue keeps growing.
What is NVDA's intrinsic value and DCF price target?
A.L. Capital Advisory's model produces a blended fair-value range (25% pure DCF, 75% analyst consensus) of $165 (bear case) to $448 (bull case) for NVIDIA Corporation (NVDA). At $222.27, the margin of safety vs. blended base case is +23% (positive = discount to fair value; negative = premium). The bear-to-bull spread reflects genuine sensitivity to the two dominant DCF inputs: the terminal growth rate and the CAPM cost of equity (this model discounts EPS, an equity-level metric, so the cost of equity rather than a debt-weighted WACC is the applicable discount rate). Terminal value typically accounts for 60-80% of total intrinsic value in most equity DCF models, which is why a range is more analytically sound than a point estimate. The central analytical question is not what the DCF outputs as a single number but which growth trajectory the current market price already discounts. All DCF analysis follows CFA Institute standards and is conducted by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework →
Is NVDA a buy or sell in 2026?
NVIDIA Corporation (NVDA) carries a Strong Buy quantitative rating from A.L. Capital Advisory, set by Discounted Cash Flow margin-of-safety band with no analyst-conviction overlay applied. Five-factor model scoring (Value, Quality, Momentum, Volatility, Size) and CVaR tail risk measurement are shown separately on the page. At $222.27, the margin of safety vs. blended base fair value is +23% (blended fair-value range: $165 bear – $448 bull). That places the current price in the Fair Range zone of A.L. Capital Advisory's DCF framework, which sets the quantitative grade component that determines this rating. Composite factor score: 3.8/5. Strongest factor: Quality (5.0/5). Weakest factor: Volatility (2.0/5). Trailing P/E: 27.7x. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Rating Methodology (this page) →
What is the average analyst target price for NVDA?
Wall Street consensus target for NVDA: $328.49 (+47.8% upside from the current price of $222.27). The analyst target range spans $180.00 (most bearish) to $515.00 (most bullish). Consensus recommendation: Strong Buy. Note that analyst price targets typically reflect a 12-month forward horizon and are derived from a blend of DCF, comparable-company, and sum-of-the-parts analysis. A.L. Capital Advisory's Strong Buy composite rating is calculated from the blended margin-of-safety grade, applicable automatic fundamental penalties, and a disclosed qualitative analyst-conviction overlay — not from five-factor scores or CVaR, which are supporting diagnostics shown elsewhere on this page. The displayed blended fair value combines the standalone DCF output with Street consensus for well-covered names (see the DCF Assumptions box for the exact blend weight), so it does not track Street consensus mechanically, but it is not fully independent of it either. When the composite rating and the Street consensus recommendation diverge, the divergence itself is informative: it can reflect differences in time horizon, valuation methodology, or the degree to which the current price already discounts the consensus case. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Data & Sources (this page) →
How does NVDA score on Value, Quality, Momentum, Volatility, and Size?
NVDA five-factor scores (A.L. Capital Advisory, 1–5 scale): Value 4.0/5 (above average) — measures the trailing P/E multiple versus the sector median (not the DCF or blended fair-value range, which are separate metrics on this page); Quality 5.0/5 (strong) — captures profitability metrics including return on equity (ROE: 117.2%) and net margin (63.7%) — sustained above-peer ROE and margins are the model's proxy for economic moat and pricing power; Momentum 3.0/5 (neutral) — reflects recent price trajectory and earnings surprise consistency; Volatility 2.0/5 (below average) — inverse measure derived from beta, where lower historical volatility earns a higher score; Size 5.0/5 (strong) — market capitalisation rank (mega-cap $1T+ scores 5/5). Composite: 3.8/5. Factor scores above 4.0 signal a tailwind in that dimension; below 2.0 signals a material headwind. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory.
What is NVDA's tail risk and CVaR?
The 95th-percentile Conditional Value at Risk (CVaR) for NVDA on a one-month horizon is -12.2%. CVaR represents the expected average loss in the worst 5% of monthly outcomes — a more conservative tail risk measure than standard VaR, which only marks the loss threshold. Beta of 2.22 indicates above-market systematic sensitivity with amplified drawdown exposure — beta measures historical sensitivity to market moves, not total volatility. For reference, a diversified S&P 500 ETF carries a one-month CVaR of roughly -8% to -12% in normal market conditions; individual equity CVaR is higher due to idiosyncratic risk. At the portfolio level, what matters is the marginal CVaR contribution of each holding — not its standalone figure. The A.L. Capital Advisory Portfolio Health Check quantifies each position's marginal tail-risk contribution across your entire holdings. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: CVaR & Tail-Risk Methodology →
What would trigger a rating upgrade or downgrade for NVDA?
Higher-conviction trigger: Evidence supporting the upper end of the Strong Buy range, such as accelerating earnings surprise magnitude combined with improvement in the Value factor score — specifically if the current 27.7x P/E is supported by an upward revision to DCF terminal growth assumptions. Downgrade trigger: An earnings miss at current valuations (27.7x trailing P/E) where there is limited earnings cushion to absorb negative surprises; or a sustained reversal in the Quality and Momentum factor scores for two or more consecutive quarters. These triggers are reassessed each time the underlying fundamentals, price, or earnings data refresh — the current Strong Buy rating is not held on a fixed review calendar. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Rating Methodology (this page) →
Does NVDA consistently beat earnings estimates?
NVDA has beaten consensus EPS estimates in 4 of the 4 most recently reported quarters (100%) — indicating consistent delivery across the latest 4 reported quarters. The most recent reported quarter beat consensus by 6.2%. Sustained above-consensus delivery supports both the Momentum and Quality factor scores and provides a tailwind to the current rating. Across the 4 most recently reported quarters with valid consensus data, a beat rate above 70% signals consistent execution in this model, while a rate below 50% typically corresponds to a Momentum factor score of 3.0/5 or below. Earnings surprise magnitude and direction are incorporated into the Momentum and Quality dimensions of the five-factor scoring model. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Earnings History (this page) →
How does NVDA contribute to portfolio risk and diversification?
NVDA carries a beta of 2.22 (high-volatility / growth-sensitive relative to the broad equity market). A beta above 1.0 means the position amplifies market moves in both directions at a typical portfolio weight. Strongest peer co-movement: TSM (0.62), AVGO (0.53), AMD (0.46). Holding NVDA alongside these names in the same portfolio increases concentration risk. True portfolio risk is a function of the full covariance structure — a single stock's beta does not reveal its marginal contribution to portfolio tail loss. The A.L. Capital Advisory Portfolio Health Check quantifies concentration risk (Herfindahl-Hirschman Index), pairwise correlations, and marginal CVaR contribution across all your holdings. If a single position such as this one makes up an outsized share of your net worth — employer stock, RSUs, or concentrated equity compensation — a Strategic Session builds the sequencing plan and the written allocation that follows from it. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Ledoit-Wolf Covariance Framework →
What is NVIDIA Corporation's Capital Consumption Gap?
NVDA's Capital Consumption Gap is within its normal range: implied asset life 5.8 years in FY2026, 1.2 years shorter than FY2025. Measured from NVIDIA Corporation's FY2026 Form 10-K, filed 25 February 2026, using SEC XBRL filing data.
What quantitative methodology does A.L. Capital Advisory use to analyse NVDA?
A.L. Capital Advisory analyses NVIDIA Corporation (NVDA) using a four-part quantitative research framework grounded in CFA Institute standards (not all four parts feed the composite rating formula directly — see below). (1) DCF Valuation: a two-stage earnings-based DCF that projects EPS (not free cash flow) under bear and bull assumptions, discounts at the CAPM cost of equity (the applicable rate for an equity-level metric like EPS, not a debt-weighted WACC) to produce an intrinsic value range with margin-of-safety calculation. (2) Five-Factor Scoring: each equity is scored 1–5 on Value, Quality, Momentum, Volatility, and Size. (3) CVaR Tail Risk: 95th-percentile Conditional Value at Risk from historical simulation of daily returns on a one-month horizon. (4) Earnings Surprise Analysis: quarterly beat rate and magnitude, shown for context alongside the factor scores. The current Strong Buy composite rating for NVDA is calculated separately from this broader framework: it consists of a Strong Buy quantitative grade, any automatic fundamental penalty, and a disclosed qualitative analyst-conviction overlay — see this page's Rating Methodology section for the exact formula. Five-factor scoring, CVaR and earnings surprise analysis below are supporting research diagnostics shown separately on this page; they are not direct numerical inputs into this specific composite-rating calculation. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework → · CVaR & Tail-Risk Methodology →
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[6] DCF valuation, five-factor model & composite rating
Calculated 2026-09-19T08:50:54+00:00 (UTC); see Rating Methodology above for the exact formula
Hand-authored thesis commentary (bull/bear case, catalysts, AI-Era Durability Score narrative) is cross-checked against the company's own investor-relations disclosures at time of writing; figures presented as A.L. Capital Advisory estimates are proprietary forecasts, not company guidance, unless explicitly attributed to the issuer.
Market-session status above is derived from the page's UTC generation time using standard NYSE hours (9:30am–4:00pm ET regular session); it does not account for US market holidays and may be inaccurate on those dates.
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Legal Disclaimer & Important Notices
This analysis is produced using a systematic quantitative framework applied to market data and does not constitute investment advice. Prose commentary is AI-assisted and generated from structured quantitative inputs. All data and metrics are as of 2026-09-19 and are point-in-time estimates subject to revision without notice. CVaR figures are based on historical simulation and do not guarantee future outcomes. DCF ranges and upgrade/downgrade triggers are forward-looking statements based on current assumptions and may not materialise. Past performance does not guarantee future results. This analysis does not account for individual circumstances, tax position, or investment objectives — consult a qualified financial advisor before making investment decisions. This content is intended for informational purposes only and does not constitute regulated investment advice under MiFID II or FCA guidelines. This content is not intended for US persons or residents of jurisdictions where its distribution would be contrary to local law or regulation. This service is not directed at residents of Finland, Sweden, Norway, Denmark, Iceland, or Poland. The author may hold long or short positions in securities mentioned in this analysis. Nothing on this page represents a solicitation to buy or sell any security. A.L. Capital Advisory is an independent private advisory practice and is not affiliated with NVIDIA Corporation.
CFA Portfolio Advisory — NVDA
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