BlackRock's Fink sees oil dropping to $40 on Iran peace, favoring Nvidia
BlackRock chief Larry Fink predicts crude could halve to $40 a barrel if Middle East tensions ease, a shift that could drive capital from energy into high-growth technology names like Nvidia.
BlackRock chief executive Larry Fink stated that crude oil prices could fall to $40 a barrel if the ongoing conflict in Iran resolves favorably. He noted that a successful resolution would allow Iranian oil to return to global markets, potentially cutting current prices by more than half despite current impediments in the Strait of Hormuz.
This potential price collapse signals a major macroeconomic shift for the second half of 2026. Market professionals should prepare for a capital rotation out of energy equities and into high-growth technology firms positioned to benefit from lower input costs and renewed risk appetite.
Nvidia currently presents a distinct valuation opportunity within the large-cap technology sector. The semiconductor giant trades at just 17 times forward earnings. This pricing occurs despite the company generating $96.58 billion in annual free cash flow and expanding revenue at a 65 percent year-over-year clip.
Wall Street consensus heavily supports this discount, featuring 51 Buy ratings and zero Sell ratings. The average analyst price target sits at $305.94, representing a 36 percent premium to the current share price of $225.13 based on a forward earnings per share model of $6.22.
The company's financial engine continues to accelerate on an already massive base. Fourth-quarter fiscal 2026 revenue reached $68.13 billion, a 73 percent increase from the prior year, with non-GAAP earnings per share of $1.62 beating the $1.52 consensus estimate by 7 percent.
Data Center revenue hit $62.31 billion in the quarter alone, up 75 percent year-over-year. Networking revenue also jumped 263 percent year-over-year. This surge was driven by widespread NVLink adoption across enterprise clients.
Looking ahead, Nvidia guided for first-quarter fiscal 2027 revenue of approximately $78 billion and a 75 percent non-GAAP gross margin. Crucially, this projection excludes all China Data Center compute revenue, proving that non-China demand dominates the growth trajectory.
The company beat earnings estimates in every single quarter of fiscal 2026. This consistent execution has solidified its position as a primary beneficiary of the projected tech rotation. Investors will get their next update on this momentum when the chipmaker reports results on May 20, 2026.
