BofA Says Nvidia Trades 40%-50% Below AI Peers Ahead of Aug. 26 Earnings

3 articles · Updated · Yahoo Finance · Aug 19

40%-50% is the discount Bank of America says Nvidia trades at versus AI compute peers on an enterprise value-to-free-cash-flow basis, with analyst Vivek Arya calling the gap a compelling opportunity.
31%-36% is Nvidia’s discount to the S&P 500, which Arya said overstates risks tied to the chipmaker’s investments in private AI companies such as OpenAI and Anthropic.
8% is Nvidia’s gain over the past month, yet the stock still sits 7% below its May 14 52-week high of $236.54 heading into its Aug. 26 earnings report.
Aug. 26 now looms as the next test because investors already expect strong results and bullish commentary from CEO Jensen Huang, limiting room for disappointment.
Stifel still expects a beat-and-raise, citing higher cloud capex, Foxconn’s AI rack shipments set to more than double, and Super Micro booking more than $60 billion of new orders in one quarter.