Nvidia (NASDAQ:NVDA) is hovering just under 5% below its all-time high, and the next potential catalyst is scheduled for September 10. CEO Jensen Huang is set to appear in a fireside chat at Goldman Sachs' Communacopia + Technology Conference at 8:50 a.m. PT, where investors will be listening for updates on AI demand, enterprise adoption, and the company's next-generation hardware.
Shares closed at $225.73 on Tuesday, down 2.01%, leaving the stock roughly 4.6% below its record close of $236.54. Despite the proximity to its peak, some analysts argue that Nvidia's valuation remains attractive relative to its earnings growth trajectory.
Analysts see value despite near-record price
Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and a $350 price target on September 8, calling Nvidia the "cheapest" compute stock based on calendar-2028 earnings estimates. Muse also noted that Nvidia remains under-owned by hedge funds and long-only managers, suggesting there is room for further institutional buying.
This backdrop makes Huang's appearance particularly significant. If he reinforces expectations for accelerating revenue or a broadening customer base, investors may continue to view Nvidia as inexpensive relative to future earnings. However, that support depends on estimates continuing to rise. If growth expectations flatten, the stock's valuation becomes harder to defend.
Enterprise demand is the next test
Nvidia's next leg of growth hinges on proving that AI demand extends beyond a small group of hyperscalers. Recent results from Dell have strengthened that argument. Dell raised its annual outlook after reporting record revenue and a large AI-server backlog, which D.A. Davidson analyst Gil Luria called another sign that the enterprise AI-compute market has momentum "beyond the current hyperscaler market."
Investors will be listening for commentary on enterprise adoption, sovereign AI, supply constraints, and Feynman, Nvidia's next architecture. A broader customer base would make Nvidia's growth story more durable. If AI spending remains concentrated among Microsoft, Amazon, Meta, and other tech giants, concerns about concentration will persist.
Customer concentration remains a key risk
The bullish case has a notable weakness. Nvidia's latest regulatory filing revealed that three direct customers accounted for 16%, 15%, and 13% of total revenue in the first half of fiscal 2027. Investor Dan Niles highlighted the same issue this week, noting that Nvidia's largest customers are increasingly designing their own application-specific chips.
This creates an unusual tension: the companies funding Nvidia's growth also have the strongest incentives to reduce their dependence on its GPUs. Nvidia's planned $12.93 billion acquisition of Hugging Face could help address that risk by giving the company access to more than 18 million developers and a stronger route into enterprise AI. Niles suggested that open-weight models could eventually dominate LLM usage, allowing Nvidia to sell a broader stack directly to enterprises rather than relying heavily on hyperscalers.
As the September 10 event approaches, the market will be watching for any signals that could shift the narrative. A strong showing from Huang could reinforce confidence in Nvidia's growth trajectory, while any signs of softening demand or increased competition could weigh on the stock. For now, Nvidia remains a focal point for investors tracking the AI trade.
This article is for informational purposes only and does not constitute financial advice.
