Nvidia Gains 2.2% After Huang's Buy-the-Dip Call as Valuation Stays Near 16.5x 2028 Earnings
Updated
Updated · Yahoo Finance · Aug 25
Nvidia Gains 2.2% After Huang's Buy-the-Dip Call as Valuation Stays Near 16.5x 2028 Earnings
3 articles · Updated · Yahoo Finance · Aug 25
Summary
Nvidia shares are up about 2.2% since Jensen Huang urged investors in Seoul on June 8 to “buy at a discount” during the AI stock sell-off, though that still trails the S&P 500’s roughly 3.1% gain.
A roughly 13% drop into June had left the stock at about 23.5 times expected fiscal 2027 earnings and 16.6 times fiscal 2028 earnings, levels the report argues were reasonable given still-rapid AI demand.
Revenue growth has reinforced that case: fiscal first-quarter sales jumped 85% to $81.6 billion, including a 92% surge in data-center revenue to $75.2 billion.
At Aug. 21’s $214.72 close, Nvidia trades near 23.8 times fiscal 2027 earnings and 16.5 times fiscal 2028 earnings because analyst profit forecasts also rose—to $9.01 and $13 per share, respectively.
Free cash flow of $48.6 billion against just $1.8 billion in capital spending supports the valuation, even as $119 billion in manufacturing and supply commitments shows how heavily Nvidia is locking in future AI capacity.