Quick Read – NVDA hit a 7-year valuation low at 23x forward earnings, while next-gen Rubin and Vera architectures signal peak growth is nowhere near. – Nvidia’s 75% gross margins, more typical of software firms, could persist if it pivots from GPU vendor to a full physical AI…
d agentics ecosystem. – Duan Yongping of H&H International Investment took a large position in Q1, likely betting hyperscaler custom silicon won’t displace Nvidia from AI stacks fast enough. – Nvidia (NASDAQ:NVDA) might be 12% off its all-time highs from around three months ago, but, all the while, the valuation recently has sunk to depths not seen in around seven years. Indeed, the value case for shares of the fast-rising GPU gainer is really nothing new
Whether you look at the 31.7 times trailing price-to-earnings (P/E) or the 23.2 times forward P/E multiple, it’s not hard to make an argument for accumulating shares while they’re in a relatively cool spot. Of course, if the semiconductor names fold, don’t expect shares of Jensen Huang’s $5 trillion empire to be spared. In any case, there’s no shortage of believers in the name, even as the stock chart starts looking far less attractive than in recent years.
Duan Yongping of H&H International Investment actually added a huge position in the firm back in the first quarter. A Magnificent bargain in the Mag Seven While I understand concerns that the seemingly cheap (at least relative to the astronomical growth at gross margins that scream “too good to be true”) name might actually be a trap once hyperscalers finish their data center builds or start phasing out Nvidia hardware for their own custom silicon, there’s great uncertainty with the timeline. Until the hyperscalers spend less (it feels like they’ll spend more from here) and produce enough silicon to satisfy their own inference needs (chokepoints and demand will make this hard), Nvidia is bound to keep selling — and selling well.