What's Going on With Nvidia Stock? | NVDA Stock Deep Dive Part 1

Parkev Tatevosian, CFA•Aug 31, 2026

Summary

Parkev states that Nvidia delivered outstanding results with $96 billion in sales, surpassing the management team's expectations by approximately $5 to $6 billion. Parkev argues that the newly provided 70% revenue growth target for fiscal year 2028 is particularly significant because it is currently limited by supply constraints, suggesting that underlying demand is even stronger. Parkev highlights that the top five hyperscalers are expected to spend $1.3 trillion on capital expenditures by 2027 to build out data centers, creating a massive backlog for Nvidia's hardware.

Parkev mentions several key stocks and their roles in this growth cycle:

NVDA (Nvidia): Parkev argues that the stock's 10% price jump following the earnings report is justified by robust demand and an upgraded long-term outlook. Parkev states that while data center demand is the current driver, future catalysts like autonomous vehicles and warehouse robotics will sustain sales once the data center buildout peaks around 2028. Parkev identifies Nvidia as the top-ranked stock to buy within Parkev's coverage universe due to these sustained innovation capabilities.

AMZN (Amazon): Parkev states that Amazon's AWS segment is seeing accelerating revenue growth, which recently reached 37% with operating profit margins near 40%. Parkev notes that Amazon has committed to deploying an additional 2 million Nvidia GPUs through 2029 and will adopt Nvidia's full physical AI stack for its warehouse robots. Parkev argues that this reliance on Nvidia hardware, despite Amazon having its own proprietary chips, demonstrates Nvidia's strong competitive moat.

GOOGL (Alphabet): Parkev mentions Alphabet as a major hyperscaler that is contributing to the industry's $2 trillion backlog for computing availability. Parkev states that Alphabet's cloud unit is experiencing rapidly increasing operating margins that are approaching the 40% mark, similar to its peers. Parkev argues that the high profitability of these cloud units motivates continued massive spending on Nvidia's chips to secure future revenue.

Mentioned Stocks

AMZN

Sentiment: BUY

Reasoning: Parkev identifies Amazon's AWS as a core driver for Nvidia's success, noting its 37% revenue growth and 40% operating margins. Parkev states that Amazon's commitment to 2 million additional GPUs and its adoption of Nvidia's full physical AI stack for warehouse robots are strong bullish indicators for the ecosystem.

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NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev upgraded Nvidia to the 'best stock to buy' ranking across Parkev's coverage universe. Parkev highlights the massive $96 billion revenue beat and the 70% growth target for 2028 as proof of sustained momentum. Parkev argues that even if data center demand peaks, catalysts in autonomous driving and warehouse robotics provide a multi-decade growth runway.

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GOOGL

Sentiment: BUY

Reasoning: Parkev notes that Alphabet's cloud operating margins are quickly approaching 40%, justifying continued heavy investment in AI infrastructure. Parkev states that Alphabet is part of the top tier of hyperscalers driving a $2 trillion backlog, which ensures long-term demand for Nvidia's processing power.

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