CLSA reiterates Nvidia stock rating on strong earnings upgrades
#Nvidia #CLSA #Earnings Upgrades #AI Revenue #Stock Rating #Price Target #Technology Investments #Artificial Intelligence
📌 Key Takeaways
- CLSA maintained a High-Conviction Outperform rating on Nvidia with a $300 price target
- Nvidia has seen significant earnings upgrades of 27%-35% for FY27-28
- The stock is currently trading at a sub-23x P/E ratio with a PEG ratio of 0.55
- Nvidia booked $30 billion in sovereign AI revenue in FY26
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CLSA reiterated its High-Conviction Outperform rating and $300 price target on Nvidia (NASDAQ:NVDA) on April 3, 2026, citing strong earnings upgrades and attractive valuations despite recent market volatility. The firm noted that Nvidia's earnings have seen 27%-35% upgrades for FY27-28 over the last six months, aligning with broader analyst sentiment as 33 analysts have revised their earnings estimates upwards for the upcoming period. CLSA emphasized that the stock has been somewhat dissociated from its earnings performance even before recent geopolitical events, suggesting potential upside for investors.
The Hong Kong-based brokerage highlighted Nvidia's strong fundamentals, including exponential token growth, buoyant earnings, and attractive valuations now at a sub-23x price-to-earnings ratio on 12-month forward GAAP earnings per share. The company's PEG ratio of 0.55 suggests strong value relative to growth prospects, with InvestingPro analysis indicating the stock is currently undervalued based on Fair Value calculations. These metrics come as Nvidia booked $30 billion in sovereign AI revenue in FY26, demonstrating the company's significant positioning in the artificial intelligence infrastructure market.
Looking ahead, CLSA projected that operating cash flows from major cloud providers Amazon, Google, Microsoft and Meta will reach $1 trillion by 2028, noting Amazon's recent capital expenditure surge as a sign it wants to catch up on market share loss in AI cloud. The firm also acknowledged that dry powder in the private equity and venture capital space has decreased from 2023 peaks, potentially impacting future investment capacity. Nvidia has recently made strategic moves to strengthen its position, including a $2 billion investment in Lumentum Holdings and another $2 billion in Coherent Corp. to advance optical technologies for AI data centers, both involving multibillion-dollar purchase agreements and support for expansion efforts.
🏷️ Themes
Stock Market Analysis, Artificial Intelligence, Technology Investments
📚 Related People & Topics
Nvidia
American multinational technology company
Nvidia Corporation ( en-VID-ee-ə) is an American technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, it develops graphics processing units (GPUs), systems on chips (SoCs), and application programming interfaces (APIs) for...
CLSA
Capital markets and investment group
CLSA Ltd. (formerly known as Credit Lyonnais Securities Asia) is a capital markets and investment group focused on alternative investment, asset management, corporate finance and capital markets, securities and wealth management for corporate and institutional clients. Founded in 1986 by two former ...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry South Korean stock trading temporarily halted as KOSPI slides over 11% Asia stocks slide amid Iran tensions, mixed China PMIs; S.Korea slumps 11% Stocks close in the red as widening Middle East conflict sparks inflation fears Gold slips on stronger dollar; safe haven demand remains high amid Iran conflict (South Africa Philippines Nigeria) CLSA reiterates Nvidia stock rating on strong earnings upgrades By Analyst Ratings Published 03/04/2026, 12:45 AM CLSA reiterates Nvidia stock rating on strong earnings upgrades 0 NVDA -1.33% COHR -6.06% LITE -11.34% Investing.com - CLSA reiterated a High-Conviction Outperform rating and $300.00 price target on Nvidia (NASDAQ:NVDA) . The firm noted that Nvidia’s earnings have seen 27%-35% upgrades for FY27-28 over the last six months. This aligns with broader analyst sentiment, as InvestingPro data shows 33 analysts have revised their earnings upwards for the upcoming period. CLSA said the stock has been somewhat dissociated from its earnings even before recent geopolitical events. The firm said it remains focused on exponential token growth, buoyant earnings and attractive valuations, now at a sub-23x price-to-earnings ratio on 12-month forward GAAP earnings per share. The company’s PEG ratio of 0.55 suggests strong value relative to growth prospects, and InvestingPro analysis indicates the stock is currently undervalued based on Fair Value calculations. For deeper insights, investors can access Nvidia’s comprehensive Pro Research Report, one of 1,400+ available for top US stocks. CLSA said operating cash flows from Amazon, Google, Microsoft and Meta is set to reach $1 trillion by 2028. The firm noted Amazon’s recent capital expenditure surge as a sign it wants to catch up on market share loss in AI cloud. The firm acknowledged that dry powder in the private equity and venture capital space is down from 2023 peaks. CLSA said Nvidia booked $30 billion in sovereign AI revenu...
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