Nvidia Trades at 29x Earnings with 85% Revenue Growth
NVDA•Nvidia’s shares have fallen in the recent AI chip sell-off but still trade at 29x forward earnings while posting 85% year-over-year revenue growth. Analysts cite Nvidia as the least risky buy among beaten-down peers ON Semiconductor and Intel.
1. Stock Sell-Off and Valuation
Nvidia’s stock pulled back alongside other AI chip names but remains richly valued at approximately 29 times forward earnings. The company reported an 85% increase in year-over-year revenue growth, driven by accelerating data center demand for its GPUs.
2. Peer Comparison
ON Semiconductor shares fell 23% after announcing a $7 billion acquisition yet show early signs of cyclical recovery, while Intel has regained some momentum on turnaround efforts but remains unprofitable on a GAAP basis. Both peers trade at lower multiples but face distinct operational risks.
3. Analyst Buy Thesis
Analysts favor Nvidia as the least risky purchase in the sector, citing its market leadership, deep software ecosystem and strong gross margins. Continued AI adoption and diversified end-markets underpin the bullish case despite high valuation.
