A company growing faster than almost any other is being valued as if its best days are behind it, and the numbers tell a fascinating story.
The market is pricing NVIDIA (NVDA) as if its historic run is about to end
The semiconductor giant, whose chips power the artificial intelligence boom, has seen its stock climb 24.5% over the last year. Yet at its current price around $195.55, it sits about 17% below its 52-week high, carrying an implicit assumption: the explosive growth is hitting a wall. That assumption clashes sharply with the data.
NVIDIA’s revenue grew 70.7% over the trailing twelve months, a pace that puts it in the top 3% of all large-cap companies. Despite this elite growth, its 3.4% earnings yield is higher, meaning cheaper, than that of 57% of its large-cap peers. It is almost unheard of for a company to rank so high on growth and so low on valuation.