Nvidia shares staged a decisive technical breakout this week, regaining momentum as analysts significantly raised future earnings estimates based on strong AI sector growth projections.
- Sales are projected to rise 63% next year, with earnings expected to increase by 55.5%, supported by the estimated $500B in AI capital expenditure.
- The company reported robust Q3 revenue of $57.01B, primarily driven by continued strong data center demand, alongside improving US-China trade clarity.
- The stock is currently trading at 39.5x forward earnings (PEG of 0.85), leading analysts to view the valuation as undervalued.