Nvidia: Analyzing Its Datacenter Customers In A Changing Environment

Nvidia Corporation remains a Buy as hyperscaler and NeoCloud demand drives robust growth and profitability. NVDA's valuation has declined to a 28x PE, yet earnings and margins remain strong with Q2 FY27 net income up 126% YoY. Capex growth from hyperscalers is a key driver; any slowdown or ROI deterioration poses a risk to NVDA's outlook.