This article first appeared on GuruFocus.
Evercore ISI tells investors to buy Nvidia (NASDAQ:NVDA) ahead of the company’s Nov. 19 earnings, saying demand momentum, improving supply and an attractive valuation leave the market underestimating growth. The firm keeps an Outperform rating and a $261 price target, calling NVDA a buy into the quarter.
Evercore’s channel checks show GB200 and GB300 availability has significantly improved, but demand still outstrips supply, a setup the firm says points to a likely beat/raise quarter. Analysts also flag valuation metrics that look reasonable: NVDA trades at a near-term P/E of about 30x, below its nine-year median of 35x, and posts a 2026 PEG of roughly 0.55x.
Cloud capital spending drives the thesis: Evercore forecasts hyperscaler CapEx growth of 72% in 2025 and believes Street estimates for 2026 remain conservative. The firm contrasts today’s AI cycle with the 1990s dot-com buildout, arguing AI capacity installs occur alongside real-time demand.
Evercore reports that the difference between the street estimate of Blackwell/Rubin revenue ($335 billion) and the pipeline of $500 billion by Jensen Huang leaves a wide gap that may cause a big increase in revenue in case hyperscaler spending remains hot.
