NVIDIA Trades at 33.4x Earnings Despite 71% Growth and 64% Margins
Updated
Updated · Trefis · Aug 19
NVIDIA Trades at 33.4x Earnings Despite 71% Growth and 64% Margins
3 articles · Updated · Trefis · Aug 19
Summary
NVIDIA trades at 33.4 times earnings—fourth out of five key peers—even though it leads the group with 71% trailing revenue growth and 64% operating margins.
That discount reflects investor concern that NVIDIA’s rapid product cycle could stumble as VeraRubin shipments begin in the third quarter after the record-fast Blackwell ramp.
China is another drag on sentiment: management again excluded any China data-center compute revenue from its outlook, raising pressure on other businesses to sustain growth.
A new CPU push could test whether the market is too cautious, with NVIDIA targeting a $200 billion addressable market and saying it has visibility to nearly $20 billion in CPU revenue this year.
The mismatch is also visible in the stock’s 22% one-year gain, which ranks fourth in the peer group despite stronger current growth and profitability than pricier rivals such as AMD and Marvell.