Nvidia Valued at 22× vs Intel’s 92× as Suppliers Report 50% Surge, $25B Profit
Nvidia trades at about 22 times forward earnings, markedly lower than Intel’s 92 times, underscoring its relative valuation appeal as strong AI chip demand persists. Key suppliers Victory Giant and SK Hynix highlighted momentum, with the former’s HK$2.6B IPO surging 50% and the latter posting a record $25B quarterly profit.
1. Victory Giant’s Hong Kong Debut
Victory Giant Technology Huizhou Co., a printed circuit board supplier to Nvidia, raised HK$20.4 billion ($2.6 billion) in its Hong Kong listing and saw shares jump 50% to HK$315 from the HK$209.88 offer price after a 74% gray-market gain and commitments from 37 cornerstone investors.
2. SK Hynix Posts Record AI-Driven Profit
SK Hynix reported a record operating profit of $25.0 billion for January-March, a five-fold year-over-year increase driven by strong orders for high-bandwidth memory chips used in AI servers, and announced plans to accelerate capacity expansion as client demand outstrips current production capabilities.
3. Nvidia’s Valuation Edge Over Intel
Nvidia trades at about 22 times forward earnings, far below Intel’s 92 times multiple despite Intel’s 235% rally over the past year, highlighting Nvidia’s relative underpricing even as both companies benefit from surging demand for AI processors.
4. Nvidia Stock vs Google’s AI Chip Plans
Nvidia shares have remained resilient despite reports that Google is developing its own AI chips, reflecting investor confidence in Nvidia’s technology leadership, established ecosystem and the scale advantages it holds in the AI hardware market.