Nvidia (NVDA) has grown from a roughly $400 billion market cap after ChatGPT's November 2022 debut to more than $5 trillion. The author argues that earnings have grown faster than the share price, leaving the P/E at 27, the lowest since June 2019. The company is expanding beyond GPUs into CPUs, networking, software, and partnerships, including $2 billion commitments each to Marvell, Coherent, and Lumentum. Morgan Stanley expects the five largest hyperscalers to spend $1.2 trillion on capex in 2027, versus roughly $800 billion this year, while S&P Global and Goldman Sachs estimate over $5 trillion in AI infrastructure spending by 2030. The author sees the earnings-based valuation as making the stock attractive for long-term holders.
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Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.47 |
| Change that session | -0.29% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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