Is Nvidia Stock Actually Cheap? Piper Sandler Thinks So
Piper Sandler says NVDA looks undervalued on their numbers, but the real question is whether the earnings assumptions hold up.
Nvidia has been the market's favorite AI trade for two years running, and now one major Wall Street firm is making the case that the stock is still cheap — if you trust the earnings model. Piper Sandler flagged NVDA as undervalued based on their own forecasts, which puts the spotlight squarely on whether those assumptions are built on solid ground or wishful thinking.
Here's the thing about valuation calls like this: they're only as good as the numbers underneath them. Piper's bull case hinges on earnings projections that need Nvidia to keep executing at an almost inhuman level — data center demand staying hot, margins holding firm, and no serious competitive pressure eating into that dominance. That's a lot of dominance to bank on.
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But Nvidia has earned some benefit of the doubt. The company has repeatedly beaten street estimates, and the AI infrastructure buildout from hyperscalers like Microsoft, Google, and Amazon shows no sign of slowing. If capex spending by those giants stays aggressive, Nvidia's order book stays fat. That's the core of any bull thesis here.
The risk is in the assumptions, not the narrative. Consensus estimates can drift wildly when the macro shifts or when a competitor — think AMD or custom silicon from the cloud giants themselves — starts landing real punches. Right now the market is pricing in continued perfection, and Piper is essentially saying that perfection is still underpriced. That's a bold stance.
For traders, the actionable read here is simple: watch the next earnings print like a hawk. If Nvidia delivers in line or above Piper's forecast range, this cheap call ages well. If guidance disappoints even slightly, valuation support evaporates fast. The setup is high-conviction, high-stakes. Continue reading at Yahoo Finance.
