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Nvidia upgraded to Strong Buy on solid earnings, buybacks, and growth outlook despite margin pressures.

Analyst Insights
02 Oct 2026
Seeking Alpha
View Source
Bullish
Nvidia upgraded to Strong Buy on solid earnings, buybacks, and growth outlook despite margin pressures.

Nvidia Corporation has been upgraded to a Strong Buy rating due to stable valuation multiples, strong earnings revisions, a stock buyback program, and positive technical signals. The forward price-to-earnings ratio remains steady around 24x, even with impressive Q2 earnings beats and a projected 70% revenue growth by fiscal year 2028. Although gross margins are expected to face pressure in the second half of fiscal 2027, improved operating efficiency is anticipated to support ongoing earnings growth. However, investors should monitor the significant drop in free cash flow margin from 28.8% to 22%, largely caused by increased accounts receivable in Q2.

Nvidia shares are currently trading at USD 234.48 on Pluang, showing a 1.57% gain as of Oct 03, 2026 01:31 WIB. Despite the positive rating and earnings outlook, Pluang data shows a high sell order activity at 79%, indicating cautious sentiment among investors.

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