Nvidia Trails Caterpillar With 85% Gain Despite 73% Revenue Jump
Nvidia's trailing twelve-month revenue reached $188 billion, a 73% year-over-year increase, while Intel's revenue stood at $53 billion over the same period. Nvidia shares have returned 85% in the past year, lagging Caterpillar's 185% gain, sparking debate over valuation multiples and slowing AI spending growth.
1. Revenue Growth Outpaces Intel
Nvidia achieved eight straight quarters of revenue growth, driving trailing twelve-month revenue to $188 billion, a 73% increase year-over-year. By contrast, Intel’s trailing revenue for the same period was $53 billion, underscoring Nvidia’s dominant position in AI-driven GPU markets.
2. Stock Performance Comparison
Nvidia shares gained 85% over the past year but fell well short of Caterpillar’s 185% return, which was fueled by a record $63 billion backlog and a 41% surge in power generation revenue from on-site AI infrastructure projects. This divergence has prompted investors to reassess sector rotation and relative value across technology and industrial names.
3. Valuation and AI Spending Concerns
Despite Nvidia’s high profit margins and GPU dominance, valuation multiples have come under scrutiny as investors question whether future AI spending can sustain current growth rates. Concerns over slowing incremental spending and elevated price-to-earnings ratios have driven recent stock volatility.