Nvidia Trading at Forward P/E 24 as Intel Partnership Expands GPU Capacity
Nvidia shares trade at a forward P/E of 24 following robust earnings growth despite recent pullbacks, positioning the company favorably among AI peers. Intel has launched a new manufacturing collaboration with Nvidia to expand GPU production capacity for next-generation data center applications.
1. Nvidia Valuation Remains Attractive
Nvidia’s forward P/E of 24 reflects continued confidence in its earnings trajectory even after the stock experienced a pullback. Analysts cite ongoing AI infrastructure demand and recent beat-and-raise quarterly results as key drivers behind the reasonable valuation relative to peers.
2. Intel Collaboration to Boost Production
Intel has announced a strategic manufacturing partnership with Nvidia, aiming to scale up GPU output for data center clients. This agreement leverages Intel’s advanced process technologies to help Nvidia meet surging global demand for its AI accelerators.
3. Missed Opportunity in Inference Accelerators
DeepSeek analysis highlights that Nvidia underperformed in a key AI inference accelerator segment, losing share to specialized rivals. The report suggests Nvidia must address this gap to fully capitalize on growth in emerging AI workloads.