Nvidia Stock Flat Despite 37% Jump in Forward Earnings
Nvidia’s share price rose 12x from late 2022 to mid-2024 alongside a 12x earnings increase, but has traded sideways for five months despite forward earnings estimates climbing 37%. Goldman Sachs notes that memory peers delivered 55%–133% YTD gains while maintaining a 12x forward P/E, illustrating limited multiple expansion.
1. Memory Stocks Rally Versus Valuations
Sandisk, Western Digital, Seagate and Micron have collectively surged 55%–133% this year as global memory shortages boost revenue and profits. Despite triple‐digit YTD returns, these names trade at an average 12x forward earnings, below both the market’s near‐24x P/E and their own five‐year average multiples.
2. Nvidia’s Earnings Versus Stock Movement
From late 2022 through mid‐2024, Nvidia’s earnings climbed 12x and its stock mirrored that rise. However, over the past five months the share price has been range‐bound even as forward earnings projections jumped 37%, reflecting investor caution on multiple expansion in cyclical AI infrastructure.