Quick Read – NVIDIA’s valuation has compressed to roughly 20x forward earnings even as the company delivered 85% year-over-year revenue growth at a 75% gross margin. – NVDA approved $80 billion in new buybacks and raised its dividend 25x while generating $48 billion in free cash…
ow last quarter. – Meta, OpenAI, Anthropic, and CoreWeave have locked in massive multi-year GPU commitments, supporting Q2 revenue guidance of $91 billion. – I keep hitting the buy button on NVIDIA (NASDAQ:NVDA), and after the June pullback I hit it again. I bought near $225 in May, I bought near $212 in June, and I added last week close to $194.83
The story that got me into this position keeps getting louder. Here is what pulls me back every time. NVIDIA sells the picks and shovels for what CEO Jensen Huang calls “the buildout of AI factories, the largest infrastructure expansion in human history.” The checks his customers are writing agree with him, and the numbers behind those checks are why I own more shares this week than I did last month.
The Valuation Has Quietly Compressed Forward earnings sit near 20x, and the trailing multiple prints at 30. For a business that just delivered 85.2% year-over-year revenue growth to $81.61 billion at a 75.0% non-GAAP gross margin, that reads like a mature-industrial multiple on a platform running every frontier AI model. Shares are down 12.46% over the past month and sit 28% below the 52-week high of $236.26, even as Q1 non-GAAP EPS came in at $1.87 against a $1.7738 consensus.