Nvidia did it again.

Another quarter. Another blowout earnings report. Another reminder that the AI buildout is accelerating – not slowing down.

The company reported:

• Revenue: $96.2 billion

• Earnings Per Share: $2.22

• Next Quarter's Revenue Projection: $108 billion

All of these figures were well ahead of Wall Street expectations.

And after listening to Jensen Huang and CFO Colette Kress's conference call, I came away even more bullish than before.

Here are my four biggest takeaways.

Takeaway #1: This Stock is Ridiculously Cheap

CEO Jensen Huang and CFO Colette Kress said on a call with analysts that Nvidia expects 2027 revenue growth of 70%, while analysts were expecting 44%.

That means Wall Street’s current $575 billion revenue estimate for 2027 should really be revised closer to $680 billion.

Assuming similar margins, that’s earnings per share closer to $16 – well higher than the current $13.13 estimate.

At the current price tag of $220 per share… the world’s most dominant AI company sells for less than 14x forward earnings.

Realistically a company of this caliber should trade at 20-25x forward earrings – conservatively.

That’s a price target of $320 to $400.

Takeaway #2: Nvidia Isn't Worried About "Circular Financing"

One of Wall Street's biggest concerns has been Nvidia's growing financial support for AI companies that purchase its chips, creating what's often called "circular financing."

Management couldn't have been more dismissive of that concern.

Colette Kress addressed the criticism head-on:

"We recognize the scale of this support, and we know some will call this circular financing. We see it differently. We are going through a major computing platform shift, the creation of one of the most important technologies in human history, and these are once-in-a-generation companies. Their technology leadership is proven, and their customer traction and usage are skyrocketing. We expect them to become the largest technology companies in history."

Jensen Huang was even more direct:

"Frankly, I just wish I invested more!"

Management isn't backing away from these investments. If anything, the earnings call made it clear they view them as one of Nvidia's biggest competitive advantages.

Takeaway #3: I'm Not Selling Micron

I own Micron (MU) in my Million Mission portfolio, and after listening to Nvidia's earnings call, I'm not selling.

Here's what CFO Colette Kress had to say about the memory market:

"As you are already aware, we are experiencing extreme pricing conditions in memory. The magnitude of the price increase has exceeded our prior expectations and are headed even higher into next year.

Memory scarcity today is being driven in large part by the AI build-out itself, and unlike a component that simply raises our cost with no offset benefit, tighter memory supply is a symptom of the same demand surge that is driving our own growth. We have longstanding, deep relationships with all three major memory suppliers, and we are working closely with them to further increase the capacity our roadmap requires."

AI systems require enormous amounts of high-bandwidth memory, and demand is pushing memory prices higher faster than even Nvidia expected.

Micron is one of the major suppliers positioned to benefit from that shortage.

I own the stock. And after hearing that commentary, I see no reason to change my position.

Takeaway #4: More Cash Is Coming Back To Shareholders

One of the biggest questions from investors has been what Nvidia plans to do with its mountain of cash.

Should it increase its dividend?

Accelerate its stock buybacks?

The company gave us a pretty clear answer.

During the second quarter, Nvidia returned a record $26 billion to shareholders – $20 billion through stock repurchases and another $6 billion through its quarterly dividend.

More importantly, CFO Colette Kress hinted there's more to come:

"Relative to our plan to return 50% or more of free cash flow, we have returned 60% on a year-to-date basis. Going forward, we intend to increase and return excess free cash flow net of strategic uses."

Jensen Huang said something similar:

“Next year we’re going to have a tremendous amount of free cash flow. Buying back Nvidia stock is a tremendous opportunity for us.”

A larger buyback program reduces the share count, increases earnings per share, and gives the stock another tailwind on top of the company's already explosive growth.

Nvidia isn't running out of growth opportunities.

It's reaching the point where it has so much cash that it can invest heavily and reward shareholders at the same time.

That's a great problem to have.

Here’s The Bottom Line

Every quarter, investors ask the same question:

"How much longer can this last?"

And every quarter, Nvidia gives the same answer.

• Demand is still accelerating.

• Customers are still spending.

• And management continues investing aggressively because it sees an even bigger opportunity ahead.

Meanwhile, the stock trades at a discount valuation – not one you'd expect for the company at the center of the biggest technology buildout in decades.

At some point, Wall Street will have to reconcile those two facts.

Either Nvidia's growth slows dramatically...

Or investors finally assign the stock a valuation that reflects its earnings power.

After listening to Wednesday's earnings call, I'm betting on the latter.