Nvidia Stock Valuation Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 31 2026
0mins
Source: NASDAQ.COM
- Valuation Comparison: Nvidia's trailing P/E ratio stands at 35.7 and P/S at 19.9, appearing high; however, its forward P/E is only 21.1 and forward P/S is 11.5, indicating significant future growth potential that may attract investors.
- Revenue Growth Potential: In the most recent quarter, Nvidia reported a staggering 73% year-over-year revenue increase and nearly doubled its earnings per share with a 98% growth, showcasing its robust profitability in a rapidly expanding market.
- Return to Chinese Market: Nvidia has resumed production of its H200 AI chip, which could add an unexpected $32 billion in annual revenue, a factor not included in previous forecasts, potentially enhancing future financial metrics significantly.
- Investment Timing: Despite a 19% drop in Nvidia's stock price in 2026, the company maintains a market capitalization of $4.07 trillion, and with strong growth prospects, this may represent an opportune moment for investors to consider buying Nvidia shares.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 208.640
Low
200.00
Averages
264.97
High
352.00
Current: 208.640
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Presentation Highlights: During investor meetings, SpaceX executives emphasized their unique advantage in commercializing orbital AI compute, claiming to be the only company with a viable path, which is likely to attract more investor interest in their $75 billion IPO fundraising plan.
- Satellite Launch Permission Request: SpaceX has requested permission from regulators to launch up to 1 million space-based data-center satellites, indicating its ambitious plans in the orbital computing sector, which, if successful, would significantly enhance its market competitiveness.
- Technical Challenges and Confidence: Despite delays in Starship rocket development, CEO Elon Musk stated that building orbital AI data centers is not a difficult engineering challenge, as it will leverage existing technology from the Starlink satellite network, thereby boosting investor confidence in the project.
See More
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- Simplified Design: Unlike Starlink satellites, the AI satellites will have a simpler design without the need for large phased-array antennas, which will reduce production complexity and accelerate market deployment, further enhancing the company's competitiveness.
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- Future Growth Expectations: Marvell anticipates over 70% growth in its data center business for fiscal 2027, bolstered by a deepening partnership with Nvidia, indicating the company's pivotal role and accelerating demand in the AI era.
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See More
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- Future Growth Expectations: Marvell anticipates its data center business will grow over 70% in fiscal 2027, indicating a proactive expansion of its market share in the AI sector through deepening collaboration with Nvidia.
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- Industry Context: Amid the AI boom, Super Micro is the latest company to seek capital market financing, similar to Alphabet's recent announcement of an $85 billion stock sale, reflecting the urgent need for funding across the industry to support technological advancements and market expansion.
See More
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- Surge in AI Server Orders: The company has received over $39 billion in AI server orders from more than 20 customers recently, indicating a sharp increase in demand for AI-ready servers, which is expected to drive revenue growth in the future.
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