Nvidia: A 16.0x P/E Is A Crime

The Asian Investor 33.06K Followers Follow Summary Nvidia Corporation reported a stellar quarter, generating $21.3 billion in free cash flow and posting 106% year-over-year revenue growth. Nvidia trades at just 16x forward earnings, despite dominating the AI GPU market with gross margins of 75%. Data center sales, driven by Blackwell GPUs, contributed 93% of revenues. Nvidia's Q3 revenue outlook implies, at the midpoint, 89% year-over-year growth. With Vera Rubin GPU ramping in H2 and $150+ billion in FCF potential this year, NVDA stock offers deep value and significant capital allocation flexibility. BING-JHEN HONG/iStock Editorial via Getty Images Investors that have been concerned in recent weeks and months about the sustainability of the AI boom can sleep easy after Nvidia Corporation ( NVDA ), the world’s largest AI GPU maker, reported much This article was written by The Asian Investor 33.06K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, AMD, AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.