Top BofA Analyst: Nvidia Could Generate $1 Billion in Free Cash Flow Every Weekday By This Time Next Year Quick Read – Arya argues NVDA trades at just 0.3x earnings growth, making it 30% to 50% undervalued with a consensus analyst target near $305. – NVDA has fallen after each…
its last four earnings beats, shifting investor focus to balance sheet disclosures over EPS tonight. – Arya projects NVIDIA will generate $1 billion in free cash flow every weekday within a year, a milestone no other company has achieved. – Bank of America Securities semiconductor analyst Vivek Arya used a Wednesday morning CNBC Squawk Box appearance to share what he’s watching in NVIDIA’s (NASDAQ:NVDA) Q2 earnings tonight when the company reports at 4:20 PM ET. Arya argues that the market already expects an earnings beat, but investors want to better understand the current state of AI investment across the industry: “The focus tonight will probably be more on the balance sheet and its disclosures around how it’s funding the ecosystem as opposed to the EPS beat, because the fundamentals are very strong,” Arya said
Why Another Nvidia Earnings Beat Likely Won’t Move the Stock At NVIDIA’s scale, incremental EPS surprise potential is limited, which explains why the stock has struggled to rally on strong earnings reports in the past. NVIDIA stock has fallen 1-5% the day after each of its last four earnings reports. The last four reports were all beats with surprise percentages ranging from 3.64-5.46%, and every one produced a negative day-of reaction, including a 5.46% drop after the Q4 FY26 report.
The balance sheet is where the real story is being written. In Q1 FY27, NVIDIA reported $50.34 billion in operating cash flow, $48.55 billion in free cash flow, and $119 billion in total supply-related commitments. The board authorized an additional $80 billion share repurchase and raised the quarterly dividend from $0.01 to $0.25 per share, returning $20 billion to shareholders in Q1.