Nvidia set an all-time high in early October, then sold off to more than 10% below that level, a pattern the article says is familiar, since the stock has spent about as much time 10% or more below its peak as near it since 2023. On a forward P/E basis, Nvidia trades at 22.7 times forward earnings versus 19.2 times for the S&P 500, and it normally rallies to about 40 times forward earnings by year-end, a level that would roughly double the stock and has not happened yet this year. The company has said it expects nearly 90% year-over-year revenue growth next quarter, while the author argues the market is not pricing in any 2027 growth. The author calls the situation a huge arbitrage opportunity.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAvaluationsemiconductorsartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.94 |
| Change that session | +0.90% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Semiconductor Sell-Off: The 1 AI Chip Stock I'd Buy and 1 I'd Avoid
The article argues a semiconductor sell-off may offer a chance to join the AI boom at a lower price, but not every chip stock is equally suited. Broadcom (AVGO) is viewed positively for AI semiconductor revenue up 221% year over year in fiscal Q3 2026, driven by custom accelerators and AI networking, and a forward P/E of about 18 that the author finds attractive. Its key risk is reliance on a small group of large customers. Intel (INTC) is described as in a turnaround, investing in its Intel 18A process and Intel Foundry, but its forward P/E of about 51 leaves less room for disappointment if execution falls short. The author concludes Broadcom is the stronger choice for investors seeking AI growth at a reasonable price.
- Nvidia Shareholders Have a Major Reason to Be Bullish After Jensen Huang's Latest Announcement
At Nvidia's GTC conference in Berlin from October 20 to 22, CEO Jensen Huang unveiled server racks combining 72 next-generation Vera Rubin GPUs, 256 custom language processing unit chips and Vera CPUs, designed to help data centres become “AI factories”. Nvidia says its sales opportunity per gigawatt of compute has risen from $18 billion with Hopper to $25 billion with Blackwell and $40 billion with Vera Rubin, aided by CPU integration that targets AI inference. Huang estimated a 1-gigawatt AI factory costs operators about $50 billion to set up and could generate roughly $40 billion in annual revenue, while a three-month delay in bringing one online could forfeit $10 billion in potential sales. The article calls this a bullish development for shareholders, though concerns about an AI valuation bubble have caused volatility across the sector.
- OpenAI Reportedly Plans to Buy Google's AI Chips. Should You Sell Nvidia Stock?
According to The Information, OpenAI plans to buy Google's AI chips, though no financial terms were disclosed and OpenAI declined to comment. The author argues the report says less than its headline implies: OpenAI had rented Google's TPUs in 2025 for early testing, this is a plan rather than an order, and the report does not say OpenAI is cutting back on Nvidia. Nvidia has estimated OpenAI's current and planned commitments at around 12 gigawatts and an opportunity of about $600 billion through 2030, while expecting supply to remain a bottleneck at least through fiscal 2028. At around $218, Nvidia shares trade at about 14 times analysts' average forecast for fiscal 2028 earnings, and the author does not think the report is enough reason to sell the stock.
- Buy 10 Shares of Nvidia Today? Here's What Different 2030 Scenarios Could Look Like
NVIDIA's quarterly revenue more than doubled year over year, and 10 shares priced at $210.96 each came to $2,109.60. The base-case model projects the stake could reach about $3,809 by the end of the five-year window, an 80.56% total return from a modeled price of $380.90 per share, and the article stresses the model is for research only. Three growth drivers are cited: demand running ahead of supply, higher revenue per gigawatt for Vera Rubin, and ACIE revenue, covering enterprises, NeoClouds and sovereign buyers, up 138% to $40 billion. Risks include margin pressure from memory costs, China export restrictions, $279 billion in supply obligations, competition from custom chips such as Amazon's Trainium, and volatility with a beta of 2.216. Sample 2030 markers range from $2,545.70 to $3,681.30, and the article notes none of the scenarios is certain.
- Nvidia vs TSMC: Here's Which One May Be the Biggest AI Winner
The article compares Nvidia, the market-leading designer of GPUs crucial to AI tasks, with TSMC, which manufactures those chips; over three years their stocks rose more than 400% and 300%, respectively. Nvidia benefits from its early AI push, its CUDA platform and full-stack product range, with gross margins consistently above 70% and quarterly revenue up 106% to $96 billion. TSMC gains regardless of which chip designer leads, holding more than 70% of the pure foundry market according to Counterpoint Research, and it posted a sixth straight quarter of record profit on $46 billion in revenue. However, TSMC bears high manufacturing overhead costs that Nvidia does not face, and the author suggests Nvidia may be the bigger AI winner thanks to its pricing power and market dominance.
- China's AI bubble bursts, $480 billion in market value evaporates in under 4 months
The STAR50 index, focused on AI and semiconductor companies, has fallen 40% in under 4 months, wiping out about $480 billion in market value, while the CSI 300 is down about 20% from its June peak. Many high-flying stocks have lost about half their value: Unitree has halved since its August listing, and MetaX and Moore Threads are also down about half since July. Optical component makers for data centers, Zhongji Innolight and Eoptolink, have dropped about 60% from their peaks, partly due to moves in Washington to ban their equipment from U.S. data centers. Even after the decline, STAR50 stocks trade at about 100 times trailing 12-month earnings, well above roughly 30 times for the Nasdaq 100, leaving many investors worried the sell-off is not over. Some funds still view the market positively, seeing lower prices as an opportunity for cautious investors.
Related markets
Latest news
- Asian trading is mixed as worries about AI-related issues grow
Asian shares traded mixed early Friday as concerns about the future of artificial intelligence grew after Alphabet's stock drop weighed on U.S. markets. Japan's Nikkei 225 fell 2.6% to 62,960.60, while South Korea's Kospi declined 5.4% to 5,618.76 as SK Hynix and Samsung Electronics both slipped. The Bank of Japan is closing a two-day policy meeting, but most analysts expect no action after raising its benchmark rate to 1.25% last month, and the U.S. has pressed Japan to raise rates over the weakening yen. On Wall Street on Thursday, the S&P 500 fell 0.3% to 7,720.39 and the Nasdaq composite tumbled 1.4% to 26,184.72, as Alphabet's Class A shares dropped 12.6% in their worst day since trading began more than 20 years ago. The 10-year Treasury yield fell to 4.94% from 5.05%, while U.S. crude gained 2.80% to $104.86 a barrel.
- Notable proposal on electric cars in Vietnam
A draft national technical regulation on safety and environmental protection for cars would require pure battery electric vehicles (BEV or PEV) to be fitted with an AVAS sound alert system for pedestrians and cyclists. AVAS must activate automatically when the vehicle travels below 20 km/h or reverses, is on by default at start-up, and may have a switch that drivers can use to turn it on or off. The sound must be continuous, change with speed, and must not resemble horns, bells, emergency alarms, musical tones, or animal sounds; for M1 cars fitted with AVAS, it may only operate when running fully on electricity. According to the Vietnam Register, pure electric cars can move slowly without the engine noise people nearby expect, so the requirement aims to improve safety for pedestrians, motorcyclists and cyclists.
- Tightening Resale of Social Housing After 5 Years: What Happens to Buyers' Rights?
The draft amended Housing Law proposes allowing social housing (NƠXH) to be resold only after 5 years and only to eligible buyers, instead of being transferred under the current market mechanism. Many opinions say a clear transitional mechanism is needed to protect those who bought under the old rules. A resident of the Đại Kim social housing project in Hà Nội said current listings are around 60-65 million VND/m², 4-5 times the original price of over 14 million VND/m², and worried that narrowing buyer eligibility and capping prices would hurt existing owners' rights. Lawyer Hoàng Hà (Ho Chi Minh City Bar Association) said the policy must clarify who can buy resold units, set transparent and objective pricing rules, and adopt transitional provisions based on when the buyer's rights were established. He argued that buyers who signed valid contracts before the new law takes effect should keep resale rights under the old rules, even if they have not held the home for 5 years or do not yet wish to sell.
- VPBankS Plans to Offer VND 6,000 Billion in Bonds
VPBankS (ticker VPX, HoSE) has approved a public offering of 60 million bonds, code VPXPO2627001, with a maximum value of VND 6,000 billion. The bonds are non-convertible, carry no warrants and no collateral, and all proceeds will supplement margin lending. The bonds have a 12-month term and a fixed 9.5% annual coupon paid every six months, with the offering expected from Q4/2026 to Q1/2027. Individual investors can buy at least 10 bonds (VND 1 million), and institutional investors at least 50,000 bonds (VND 5 billion). Separately, the company is collecting written shareholder opinions until 16:00 on 02/11/2026 on a plan to issue 843.75 million bonus shares at a 100:45 ratio, which would raise charter capital from VND 18,750 billion to VND 27,187.5 billion if completed.
- What SPS Commerce (SPSC) Said on Its Q3 Earnings Call
SPS Commerce (SPSC) reported third-quarter revenue of $197.6 million, up 4%, while adjusted EBITDA rose 17% to $70.9 million, a 36% margin above its long-term target. Amazon policy changes and the June 30 divestiture of the Revenue Recovery business reduced reported revenue growth by 500 basis points, prompting management to lower its outlook, though underlying growth remains in the high-single-digit range. The company highlighted rising adoption of its AI-powered MAX tools and expects advanced agent capabilities to become monetizable in 2027. It also repurchased $48.8 million of shares during the quarter.
- Grab Holdings And 2 Top Penny Stocks To Watch
The article notes that AI hardware spending is absorbing cash at large firms such as Amazon and Intel, while smaller companies face tougher funding as borrowing costs stay high, and profiles three low-priced stocks. Grab Holdings (market cap US$11.24 billion) runs a Southeast Asian superapp with deliveries revenue of about US$1.99 billion, mobility revenue of US$1.31 billion and financial services revenue of US$430 million; the article cites an expectation that its financial services unit will break even in the second half of 2026, though its expanding lending carries credit risk. Aurora Innovation (market cap US$10.28 billion) develops the Aurora Driver for autonomous trucks and ride-hail vehicles, and is operating driverless trucks in daily commercial freight with more than 500,000 commercial miles. SoundHound AI (market cap US$2.0 billion, revenue of about US$203 million) provides voice and conversational AI tools to enterprises. The article highlights risks around funding costs, execution and competition for each company.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.