[Click eStock] "NVIDIA, Must Hold Regardless of Stock Price Level"

On the 30th, Korea Investment & Securities evaluated NVIDIA as a "stock that must be held regardless of the stock price level."

On the same day, researchers Cha Min-sook and Hwang Jun-tae from Korea Investment & Securities stated, "From fiscal year (FY) 2026 onwards, investment results including Blackwell will lead to revenue growth, gradually alleviating concerns about profit margin and earnings per share (EPS) growth slowdown."

NVIDIA recorded revenue of $30.04 billion and an EPS of $0.68, exceeding market expectations with increases of 122.4% and 151.9% respectively compared to the same period last year. Data center revenue rose to $26.27 billion, up 16.4% quarter-over-quarter and 154.5% year-over-year. The guidance for the next quarter was presented with a midpoint revenue of $32.5 billion and a gross margin of 75%. The annual gross margin guidance was stated to be in the mid-70% range.

Researchers Cha Min-sook and Hwang Jun-tae said, "We believe the uncertainties such as Blackwell delays and resulting revenue reductions have been resolved. The mask change for Blackwell has been completed, and it was mentioned that the change was for yield improvement rather than a functional issue. Although some are concerned about the decreasing gross margin as the quarters progress, as Blackwell enters full-scale mass production, yield will improve and revenue will expand, leading to gradual improvement in profit margins."

[Image source=Reuters Yonhap News]

They added, "Due to the increased revenue base effect and the rising development costs for the rapid release of the next architecture, EPS growth rate will inevitably slow down in the short term. However, the increase in research and development expenses is more of an investment to strengthen NVIDIA's market dominance than a cost. We maintain a positive view."