NVIDIA fell slightly at the beginning of the Friday session but continues to find buyers below to offer hope for a continuation of the longer-term uptrend.
NVDA
NVIDIA fell slightly at the beginning of the trading session on Friday, but it does seem like it has a significant amount of support underneath that could offer quite a bit of opportunity for traders to get long yet again. With that being the case, I believe that this is a market that will continue to attract a lot of buy on the dip type of trading, and it is worth noting that the artificial intelligence trade is very much back on the minds of traders at the moment.
The next major earnings call is going to be May 20, and analysts look for revenue growth in the 80% range to sustain the current valuation. NVIDIA still commands approximately 75% of the AI accelerator market, while down from its 87% peak in 2024. The total market has expanded so much that its absolute revenue is still hitting record highs, as much as $215.9 billion.
Market Expansion and Future Platforms
Demand for Blackwell architecture is supposedly off the charts, and while the market looks at this, it is already started to look forward to the Rubin platform arriving later this year.
At $200, NVIDIA has a P/E ratio of 40.7 times earnings, which is actually below its 5-year median of 62 times earnings. This suggests that despite its high price, earnings growth has largely kept pace with its stock appreciation. At this point, it looks like value hunters may be in the market looking to take advantage of any pullbacks. While there has been a lot of noise about the “AI Bubble”, NVDA will almost certainly remain a huge part of the Artificial Intelligence arena for decades to come. I remain bullish.