Nvidia has become the “Federal Reserve” of the AI revolution. And it’s making significant investments including $10 billion in Anthropic and $30 billion in OpenAI. |
The AI chipmaker stands to earn a windfall when these stocks go public in 2026 and 2027. |
Here’s how you can invest ahead of these IPOs. |
Nvidia (NASDAQ: NVDA) has been basically unchanged since June. |
Shares trade around $219 – below its 12-month high of $236. |
Now look at what the business did over that same stretch. |
Nvidia reported quarterly revenue of $96.2 billion — up 105.9% from a year ago. That was also roughly $4 billion ahead of Wall Street estimates. Data center revenue was $89 billion. |
Revenue doubled. The stock went sideways. |
When earnings grow faster than the share price, the multiple compresses. Nvidia's trailing P/E has fallen into the high 20s. That's roughly where the S&P 500 trades. This used to be a 45x to 50x stock. |
On forward numbers it gets cheaper. Consensus puts fiscal 2027 earnings near $9.25 a share — about 24 times. Fiscal 2028 consensus is around $15.50 on sales of $670 to $690 billion. That works out to 14 times earnings. |
The stock hasn’t been this cheap since 2016. |
Want to invest in Nvidia’s next Pre-IPO deal? Go here to check it out. |
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Fourteen times for a company that just guided to 70% revenue growth and told investors it is supply-constrained. Demand is running ahead of what they can ship. |
There's also an $80 billion buyback authorization in place. Fewer shares = more cash flow per share. |
Here's the part that got my attention. |
UBS ran Nvidia through its cash-flow valuation framework. The model forecasts an 86% cash flow return on investment. Only 30 companies on earth are at that level. |
Wall Street's average price target is $324.34. From $219, that's a potential 48% return. |
Nvidia is great – and I’m “long” the stock. However, the biggest profits are typically made before a stock even IPOs. And I’d like to show you how to invest in these types of Pre-IPO deals. |
Simply go here to watch now. |
Ian Wyatt
Editor, Daily Profit |
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