Here's My Nvidia Stock Price Forecast for the End of September

Nvidia reported fiscal Q2 2027 revenue growth of 106% year over year and guided for roughly 90% growth in Q3, while forecasting 70% revenue growth in fiscal 2028 amid supply constraints. The company also announced a $12.9 billion acquisition of AI development platform Hugging Face, supporting the stock's recent rally. However, the article argues that Nvidia's valuation—19x trailing sales and 29x trailing earnings, near multiyear lows—may limit additional near-term upside, with potential September market weakness posing a modest risk.

Analysis

The actionable signal is not the post-earnings momentum but whether NVDA can convert AI infrastructure demand into a higher-duration software and developer-platform revenue stream. A Hugging Face transaction, if independently confirmed, would deepen Nvidia's control of model discovery and deployment workflows, but it could also alienate customers that value Hugging Face's hardware neutrality and accelerate support for AMD, custom ASICs, and open inference stacks. The acquisition price and retention terms matter more than the headline: a low-revenue, high-multiple software deal would be strategically useful but initially dilutive to Nvidia's capital-return narrative.

Near term, the stock is exposed to an asymmetric "no incremental upside" setup after a large earnings repricing: expectations now require sustained shipment growth, stable gross margin, and no material customer-capex digestion. The cited hyperscaler spending figures and the characterization of valuation as a multiyear low require verification before underwriting further multiple expansion; AI capex is increasingly shifting toward internally designed accelerators, networking, memory, and power infrastructure, which can support the ecosystem while reducing Nvidia's share of incremental spend. Over 1-3 months, a broad risk-off move or evidence of lead-time normalization is more likely to compress NVDA's multiple than a seasonal calendar effect alone; over 6-18 months, the key debate is whether software and networking offset the eventual deceleration in accelerator unit economics.

Key Decisions for Investors

• Do not chase NVDA on the reported transaction headline until deal terms, regulatory path, and Hugging Face customer-retention commitments are verified. Use a 5-8% pullback or evidence that next-quarter gross-margin guidance holds above consensus as a better entry point for a 6-12 month long.
• For existing NVDA exposure, buy 1-3 month downside protection rather than add spot: a put spread financed with an out-of-the-money call overwrite targets a post-results volatility compression while protecting against a capex-digestion or broad-market drawdown. Reassess if NVDA breaks below its post-earnings low or if hyperscaler capex guidance is reduced.
• Express the infrastructure broadening thesis with a relative-value basket long AVGO and ANET versus NVDA at the margin, rather than a standalone NVDA short. Networking and custom-silicon content benefit even if accelerator share declines; exit the relative trade if Nvidia's next guidance demonstrates renewed share gains or if customer ASIC programs are delayed.
• Set an alert for the next MSFT, GOOGL, AMZN and META capex updates: a sequential slowdown in aggregate AI-capex commitments, or management language shifting from supply constraint to utilization discipline, would be a catalyst to reduce semiconductor-beta exposure within days rather than wait for Nvidia's next report.