"When you take a look at some of those Mag-7 stocks like Nvidia that are selling in the low 20s, some even say lower in terms of price earnings ratio, that is an awful lot of discounting. For a company that has been growing 30, 40% a year."
"Computing demand is growing exponentially. The agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today, delivering an order-of-magnitude lower cost per token, and Vera Rubin will extend that leadership even further."
Nvidia's recent valuation compression to low 20s price-to-earnings ratios appears unjustified given the company's exceptional growth metrics. Full-year revenue reached $215.94 billion, up 65% year-over-year, with Q4 revenue of $68.13 billion up 73.2% and net income growing nearly 95%. The Data Center segment generated $62.31 billion in Q4 alone, up 75% year-over-year, with networking growing 263%, indicating customers are building entire Nvidia-native infrastructure ecosystems. CEO Jensen Huang highlighted the agentic AI inflection point arrival and next-generation products like Grace Blackwell and Vera Rubin. Meta committed to millions of these GPUs in a multiyear partnership, with total supply commitments reaching $95.2 billion, demonstrating sustained demand beyond current product cycles.
Read at 24/7 Wall St.
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