Want To Know What The Next Nvidia Is? (NVDA Q1 FY4/27 Earnings Review)
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Analysis by Alex King, CEO, Cestrian Capital Research, Inc
NVDA Q1 FY4/27 Earnings Review
I think anyone lukewarm about Nvidia should take a step back and check themselves. Tomorrow, anything can happen, but today, this company is possibly the best quality business that has ever existed. It clicks in mind-bending amounts of revenue each quarter, grows that at rates that tiny businesses would envy, and turns more than half of that revenue into cashflow. Its balance sheet is extremely low risk and sees the net cash pile grow quarterly despite many investments in third party companies and many buyback programs. Many competitors have designs on Nvidia’s monopolistic market position, but as yet none have toppled it.
The next $NVDA ?
It’s $NVDA.
We rate NVDA at Hold on a long-term basis and for short-term traders believe it to be a buy as long as it holds over its 21-day EMA - details below.
Financial Fundamentals
Key points:
- Revenue growth accelerated to +85% in the quarter and to +70.5% on a TTM basis. This is on a TTM revenue base of $253bn! Unbelievable.
- The guide for Q2 (ending 31 July) is for growth to accelerate to +96%. This assumes 0 datacenter revenue from China.
- Cashflow margins hit 57%, close to the company’s record high of 61% achieved in the October 2024 quarter.
- The balance sheet has $72bn of net cash, and that’s after the company’s investment and buyback program.
Valuation Multiples
This stock is cheap relative to the market, and relative to its own history (it usually trades in the 45-50x TTM UFCF zip code).
Stock Chart
We can keep it very simple. Long if over the 21-day EMA, no position if below it. That’s my own logic with the NVDA position I bought in pre-market trading today.
Cestrian Capital Research, Inc - 21 May 2026
DISCLOSURE: Cestrian Capital Research, Inc staff personal accounts hold long position(s) in $NVDA.
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