“My God Nvidia Is Undervalued.” Ross Gerber Says $450 A Share Is Possible.
After Nvidia posted one of the largest quarterly profits in corporate history, one wealth manager ran the numbers and came back with a price target that sits above every analyst on Wall Street. His math is straightforward. His key assumption…
Hours after NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) reported one of the largest quarterly profits in corporate history, wealth manager Ross Gerber posted on X that the chipmaker was still cheap. “My god Nvidia is under valued,” he wrote, sketching a path to $450 a share. Nvidia closed Wednesday, Aug. 26 at $209.66, down 1.59%, ahead of results. In after-hours trading, shares rose 4.71% to $219.53. Gerber’s $450 sits well above both the Street’s average target and the stock’s 52-week high of $236.26.
Record Numbers Behind the Call
Nvidia reported fiscal second-quarter revenue of $96.2 billion, up 106% year over year and 18% sequentially. GAAP net income was $59.7 billion, up 126%, with diluted EPS of $2.46 and non-GAAP EPS of $2.22. Data Center revenue reached $89.0 billion, up 117%. Gross margin came in at 75.0%. Third-quarter revenue guidance was $105.84 billion to $110.16 billion, above the roughly $103.8 billion analysts modeled, with gross margin guided near 74% on rising memory costs. CEO Jensen Huang told investors, “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
Gerber’s rounding largely holds. His “$60 bil net” maps to actual net income of $59.7 billion, and his “up over 100%” understates the 126% growth print.
How He Gets to $450
Gerber’s method: full-year EPS “closer to $10” multiplied by a self-described “historic multiple of 45”. Our forward EPS estimate of $9.91 independently supports the earnings half. The multiple is the leap. Our implied price-to-earnings ratio on Nvidia is 30, and Alpha Vantage shows a forward P/E of 24. The market is not applying 45x today, and $450 sits above every level Nvidia has traded at over the past year.
Where the Street Actually Sits
The consensus analyst target is $304.73, built from 10 strong buy, 48 buy, 2 hold, and 1 sell ratings. Wedbush’s Matt Bryson carried $330 pre-earnings. Our base target is $285.68, with an optimistic case of $326.58. Gerber’s figure sits above all of them. Gerber is president and CEO of Gerber Kawasaki Wealth and Investment Management, a wealth manager and frequent media commentator. The $450 is his personal calculation. Historically a prominent Tesla bull, he turned openly critical of the automaker and trimmed his stake in 2024, and disclosed in May 2026 selling a “small amount” of his Nvidia, Micron and Broadcom shares while remaining bullish.
Cramer, Munster, and the Bear Case
Jim Cramer defended the guide on X at 6:57 p.m. ET, mocking sellers at $219 over “a 2% gross margin hit from DRAMs.. Picayune!!!!!” Later he argued the setup itself matters: “Nvidia’s quarter is a reminder that the guidance on the call is what triggers a big move.” Deepwater’s Gene Munster called it an “AI tsunami,” saying the calendar-2027 revenue guide implied next year’s AI brain would be “about 40% bigger than I thought 24 hours ago.” Futurum’s Shay Boloor told Benzinga Nvidia “delivered,” flagging hyperscale revenue of $49 billion and ACI&E revenue of $40 billion, alongside margin compression and supply commitments jumping to $279 billion.
Skeptics point to bubble concerns, circular financing across Nvidia’s AI-ecosystem investments, and guided margin compression. Gerber’s earnings half is grounded. His multiple is the leap the market is refusing to make, and that gap is the story. The buildout Nvidia is feeding also has to be powered and cooled by somebody, and we profiled seven of those suppliers in a free report on the non-chip AI infrastructure stocks.
Contact [email protected] for any questions or corrections.
AJ has spent the past 10 years writing about financial markets at The Motley Fool. His coverage centers on technology stocks and the broader macroeconomic trends, from interest rates to geopolitics, that shape where markets are headed next. AJ is drawn to the stories where big-picture economics and individual companies collide.
