$NVDA (NVIDIA Corporation) is coming off a robust quarter, where it beat on earnings and revenue expectations and guided to Q4 revenue of ~$65 billion with gross margins of ~75% (beating expectations of $62 billion and 74.6%, respectively). This tells me that demand and pricing power both remain strong.
Initially the stock rallied, but the mood on Wall Street is not that generous right now. Shares gave up their gains on Thursday and washed lower on Friday morning before bouncing later in the session.
Will that mark the low? I have no idea. What I do know is that Nvidia’s business remains strong and its valuation is…surprisingly reasonable.
On a forward 12-month basis, the S&P 500 trades at about 22 times earnings. Nvidia? 26x. That’s not quite as low as it was when it was trading sub-$90 in early April, but ~25x has typically marked a trough in this name over the last three years.
For a company that’s set to grow earnings and revenue by about 50% this year and next year, 26x doesn’t feel that egregious. Doesn’t mean the stock price can’t go lower, but it’s hard to make the argument that NVDA is overvalued here - particularly as EPS estimates keep going higher.... Show More
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Tue Mar 10 2026 16:38:52 GMT+0000 (Coordinated Universal Time)
