Nvidia Stock Has More Upside If Its FCF Margins Stay High - Shareholders Can Short Puts for Income

Nvidia Inc. (NVDA) stock could be worth as much as 33% more if its free cash flow (FCF) margins stay sky-high at an average of 47.5%. That could be good news for existing shareholders, especially those who sell short out-of-the-money (OTM) puts for income.

NVDA stock is off its recent highs at $870.28 today. But, based on its high FCF margins, which have averaged 47.5% recently, it could be worth up to one-third more. That makes its price target at $1,153 per share.