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Nvidia valuation seen as reasonable as growth trajectory accelerates
Nvidia reported 65% year over year FY26 revenue growth to $215.9 billion, with Q1 FY27 revenue rising 85% to $81.6 billion.
Nvidia’s stock is being framed as trading at a “reasonable” valuation even as some strategists warn of potential AI market concentration risks, according to Yahoo Finance. The article cites Michael Hartnett of Bank of America, who argues an AI bubble bust could be approaching, and warns that additional tech-related IPOs could push S&P 500 concentration higher, though the exact percentage discussed is tied to that outlook.
On the valuation side, the piece points to a price to earnings to growth ratio of 0.44, saying that growth and valuation appear to offset bubble concerns. It also notes Nvidia stock has risen 24% over the past 52 weeks.
The article highlights Nvidia’s fundamentals, including a 65% year over year FY26 revenue increase to $215.9 billion, and revenue growth that accelerated to 85% year over year in Q1 FY27 to $81.6 billion. It also describes Nvidia as a data center scale AI infrastructure company, organized into the Compute and Networking and Graphics segments.
For investor activity, Yahoo Finance says Third Point exited Nvidia by selling 190,000 shares, and that the firm took a new stake in SpaceX. The article adds that this Nvidia exit should not be read as a broader pullback from the tech sector, based on the SpaceX move.
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