tech
Nvidia's big GTC showcase barely budged the stock. Is that a problem?
Nobody seems to care that Nvidia's PE multiple has been shrinking since the summer.
TL;DR
- Nvidia's stock has been stagnant for eight months despite positive company updates and strong earnings.
- The stock's lack of momentum may be tied to market mechanics such as options hedging by market makers.
- Nvidia has high-confidence visibility into at least $1 trillion in revenue from Blackwell and Rubin between 2025 and 2027.
- This $1 trillion figure is considered a revenue floor and does not include potential sales from CPUs, networking, or automotive segments.
- The company's price-to-earnings ratio has been shrinking, making the stock appear cheaper despite its lack of price movement.
- Analysts view Nvidia's valuation as potentially 'absurdly valued' compared to its growth prospects and other companies.
- The article suggests holding the stock long-term and viewing the current stagnation as a buying opportunity.