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Earnings Analysis

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Summary

Nvidia Corporation remains a long-term industry leader, but I am cautious ahead of earnings due to sector froth and evolving competition.

NVDA stock trades at under 26x FY27 earnings, with analyst targets implying 25% upside; its valuation is attractive relative to peers.

Major customers like Amazon, Google, and Microsoft are developing custom AI chips, intensifying competition and pressuring NVDA's margin outlook.

While I am not bearish, I may trim NVDA exposure in the near term and await potential corrections for more attractive entry points.

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BING-JHEN HONG/iStock Editorial via Getty Images

To put things in perspective, I am a long-term bull on Nvidia Corporation ( NVDA ) and have been consistently bullish on the stock over many years.…