Nvidia Trades at 24x Forward Earnings Ahead of Results as JPMorgan Sees Limited Near-Term Catalyst
Updated
Updated · Yahoo Finance · Aug 24
Nvidia Trades at 24x Forward Earnings Ahead of Results as JPMorgan Sees Limited Near-Term Catalyst
2 articles · Updated · Yahoo Finance · Aug 24
Summary
24 times forward earnings, Nvidia now trades only modestly above the S&P 500’s 21x multiple despite remaining one of the fastest-growing large U.S. companies ahead of Wednesday’s earnings.
JPMorgan said that lower multiple reflects Nvidia’s shift from speculative AI winner to profit-rich mega-cap, while investors also discount cyclical risks including cloud capex digestion, trade policy and supply-chain constraints.
Harlan Sur wrote that earnings beats alone may not lift the stock: Nvidia’s revenue guidance topped consensus by an average 4% over the past four quarters, yet shares fell 3% to 5% on average in the following 7 to 30 days.
A rerating would likely require clearer proof of durable AI-compute leadership, benefits from recently announced infrastructure funding deals, or a China recovery, where each 100,000 H200 GPUs shipped could add about $3 billion in revenue.