Nvidia Just Hit a Record High. Here’s Why the Stock Still Looks Cheap to Me
Nvidia looks historically cheap despite strong AI demand and expectations for continued revenue growth.
TL;DR
- Nvidia is a best-in-breed company at the center of the AI boom, providing computing power for advanced AI systems.
- The stock has underperformed the semiconductor sector but continues to grow at an extraordinary rate.
- Nvidia's stock is trading at its cheapest valuation in at least a decade, at approximately 16.7 times forward earnings.
- The company recently increased its share repurchase authorization by a record $150 billion.
- Nvidia maintains roughly 97% market share in server GPUs.
- Revenue jumped 106% year-over-year in the latest quarter, with expectations for 70% growth in fiscal 2028.
- Demand for Nvidia's products is exceeding supply through 2028.