Nvidia Stock Trails AI Rivals With 14% Gain as $5.2 Trillion Size Fuels Bust Fears
Updated
Updated · Yahoo Finance · Aug 26
Nvidia Stock Trails AI Rivals With 14% Gain as $5.2 Trillion Size Fuels Bust Fears
3 articles · Updated · Yahoo Finance · Aug 26
Summary
Nvidia shares are up 14% this year, barely ahead of the S&P 500’s 12% and far behind AI-linked chip peers including Micron’s 225%, Intel’s 138% and AMD’s 124%.
Raymond James analyst Simon Leopold said the stock is stuck because investors may have limited appetite for a $5.2 trillion company, while AI-bust fears, slowing growth and peak-margin worries build.
That caution has shown up around results: Nvidia stock has fallen after earnings in six of the past eight quarters, including each of the last four, ahead of another report due after Wednesday’s close.
Leopold still rates Nvidia Strong Buy, arguing its sub-15x 2027 GAAP P/E looks too cheap versus the S&P 500’s 18.6x given projected sales and net income growth above 20% in 2028.
The next catalyst may be CPUs rather than GPUs, with Nvidia’s CPU business seen rising from about 3% of sales now to roughly 5% by 2028.