Nvidia shares are about 15% below their all-time high, as concerns that the AI infrastructure build-out could slow have triggered a broad sell-off in AI infrastructure stocks. Nvidia is set to report earnings on Nov. 17, after guiding for $108 billion in third-quarter revenue, implying 106% year-over-year growth. The stock trades at about 23 times this year's estimated earnings, while analysts who once expected long-term annual earnings growth as high as 40% to 50% now see growth of about 14% a year over the next three to five years. The article argues the valuation could still look reasonable even at slower growth, but the stock could fall if the infrastructure trade deteriorates, and it points to diversifying a portfolio and keeping some cash on hand.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Nvidiavaluationartificial intelligenceearnings
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 11/02/2026 | 202.06 |
| Change that session | -1.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Is Nvidia Stock Really Trading for Just 8 Times 2030 Earnings?
Nvidia is the market's most valuable company, with a market cap above $5 trillion. It trades at 27 times adjusted trailing earnings, but only about 8 times analysts' estimate for fiscal 2030 earnings, a figure the author stresses is a moving target. Revenue growth accelerated from 56% in Q2 FY 2026 to 106% in Q2 FY 2027, though guidance points to a slight slowdown in the current quarter. The stock trades at 13 times next year's earnings, and the board recently authorized a record $150 billion in share repurchases. The author also acknowledges risks such as slower growth or contracting net margins.
- Nvidia Is $2 Away From Falling Below $200 for the First Time Since July
Nvidia closed at $202.06, about $2 above the $200 level, valuing the company at $4.88 trillion, and has not closed below $200 since July 30. Melius Research cut its target to $315 from $420 while keeping a positive rating, warning that valuations may stay under pressure as major customers issue hundreds of billions of dollars in stock and debt to fund data centers. The shares are 15.5% below their October 6 record close of $239.24, a decline that has erased roughly $900 billion of market value. Revenue rose 106% last quarter, yet the stock trades at about 17 times forward earnings. Nvidia reports on November 17, with guidance calling for revenue of $108 billion, plus or minus 2%, and a gross margin of 74%, plus or minus 50 basis points.
- A Once-in-a-Decade Opportunity: 1 Artificial Intelligence (AI) Stock to Buy Before It Soars 60%, According to Wall Street
Nvidia's stock has climbed more than 300% over the past three years but is up only about 9% this year, as investors question whether big tech's AI infrastructure spending will be sustainable and pay off. In its latest quarter, Nvidia reported a 100% revenue increase to $96 billion and a triple-digit gain in net income to $59 billion, with data centers making up more than 90% of revenue, so a pullback in cloud giants' spending could hurt it. The average Wall Street estimate calls for a 60% gain over the next 12 months. The stock trades at 21x forward earnings, which the author considers a bargain given Nvidia's market leadership, and argues that AI's real-world rollout has only just begun.
- The 3 Best Artificial Intelligence (AI) Stocks to Buy in November
After late-October earnings reports, shares of Amazon and Alphabet sold off, and the author believes the market is missing the bigger picture for both. Google Cloud's revenue grew 103% in the third quarter, lifting Alphabet's overall growth to 25%, yet the stock fell over 10% the day after earnings. AWS grew 39% and accounts for 63% of Amazon's operating profit, so faster AWS growth should lift operating profit faster than revenue. Nvidia told investors to expect 70% revenue growth in 2027 following its second-quarter report, while trading at 26 times trailing earnings and 13 times next year's earnings. The author argues that if Nvidia returned to its current 26 times earnings level, the stock would need to double.
- The Stock Market Has Done This Just Twice in 156 Years. Now It's Happening Again.
The S&P 500 has soared since bottoming in October 2022, fueled largely by gains in AI-related stocks, and the author notes valuations are approaching very extreme levels. The CAPE ratio stands at 40.71, one of the highest readings in 156 years; the last time it was this high was the dot-com bubble, and 1929 also saw a record high before the market crashed. The article notes that AI leaders such as Nvidia, Microsoft and Alphabet are highly profitable, unlike many speculative dot-com companies, but argues that even a promising technology does not guarantee a bull market lasts forever. The author says this does not mean a crash is inevitable, but suggests reviewing how well a portfolio is prepared for a potential downturn.
- History Says Now Is the Perfect Time to Buy Nvidia Stock
Nvidia stock is up 13% in 2026, versus 11% for the S&P 500, while its Q2 revenue grew 106%. The author argues the market is undervaluing Nvidia: its forward P/E is just under 23, compared with 40 times at the end of 2024 and 2025, and 19.2 times for the S&P 500. Nvidia guided for 70% revenue growth next year, and analysts expect 68%; valued on next fiscal year's estimates, the stock trades at 13.3 times earnings. The author expects the AI build-out to support growth through at least 2030 and concludes the current buying opportunity is compelling, with no need to wait long.
Related markets
Latest news
- Why Shares of AST SpaceMobile Slipped 27% Last Month
AST SpaceMobile shares fell 26.8% last month, per S&P Global Market Intelligence, and are down 71% from their highs after a further 27% drop in October. The article attributes the slide to slow satellite deployment, since at least 45 satellites are needed in orbit for US service versus 13 today, and to a bottleneck of satellites waiting for launches on SpaceX rockets, plus competition from Starlink's planned direct-to-smartphone service. Last quarter, the company posted negative free cash flow of $719 million while generating little revenue. With a $15 billion market cap, the stock trades at a steep premium to trailing revenue; even at $1 billion in revenue, the price-to-sales ratio would be 15. The author judges the stock overvalued and says it is not a good time to buy in.
- AMD Stock Jumps on Major Samsung Chip Manufacturing Breakthrough
AMD shares climbed 4% in morning trading after the reports. Samsung Electronics is reportedly preparing to manufacture semiconductor components for AMD and Nvidia at its upcoming Taylor, Texas facility, according to South Korea's Maeil Business Newspaper, and the plant has already secured orders for its entire planned capacity. AMD is expected to account for a large share of those orders, though contract values and production volumes were not disclosed. The new plant, about 1.5 times larger than Samsung's first Taylor facility, will use 2-nanometer technology, with construction starting this month, equipment installation targeted for around February 2029, and mass manufacturing expected in 2030. The reported deal could give AMD another source of advanced chip production capacity as demand for computing chips grows.
- 2 Monster Stocks to Buy and Hold for the Next 20 Years
The article argues that Alphabet and Amazon have durable moats that can keep earnings growing for decades, and that their post-earnings sell-offs over heavy AI spending offer a better entry point. Alphabet fell about 13% after its Oct. 30 report, even though Google Cloud revenue more than doubled to about $31 billion and its operating margin rose to 36% from 24%; the stock trades at 17 times 2026 earnings estimates versus 21 for the Nasdaq-100 average. Amazon's AWS revenue grew 39%, its sixth straight quarter of faster growth, but shares slid about 7% in pre-market trading on Oct. 30 and trade near 30 times 2026 earnings estimates. The main risk cited is that AI spending keeps weighing on free cash flow, and profits could fall short if AI demand cools before those data centers pay off.
- Unifor to launch new organizing initiative with Amazon workers in the Greater Toronto Area
Unifor will join Amazon workers on Wednesday, Nov. 4, 2026, to launch a new organizing initiative to unionize Amazon sites across the Greater Toronto Area, building on earlier efforts in British Columbia. The launch begins at 6:30 p.m. at the Chinese Cultural Centre of Greater Toronto, with Unifor National President Lana Payne and Ontario Regional Director Samia Hashi attending. The workers are seeking a safe pace of work, fair pay and respect on the job. Unifor describes itself as Canada's largest private-sector union, representing 320,000 workers.
- Amazon brings its own low-priced Thanksgiving meal deal to the table
Most grocers' holiday meal bundles cost under $40, but Amazon is promoting its grocery business with a $25 Thanksgiving meal offering. The e-commerce company is using the offer to promote its grocery business during the holiday season.
- D.A. Davidson Managing Director Gil Luria Delivers His Apple Earnings Takeaways
In an NYSE Live interview, Gil Luria of D.A. Davidson discussed Apple's latest earnings and the wider tech sector. He argued that many AI-linked companies continue to report strong results and demand, and that recent share price weakness reflects election and policy caution more than the core AI business. On data centers, he said public concerns about noise and energy often reflect older designs, and that approvals are typically decided locally. On Apple, he noted signs of slowing iPhone upgrades after a strong prior year and margin pressure from price increases and rising memory costs. He said Apple's ecosystem and installed base still support its long-term position.
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.