Nvidia’s valuation has fallen to its lowest since 2019 after a nearly 4% drop on July 29, even as the company posted record revenue of $81.6 billion in its most recent quarter, an 85% jump from a year earlier. The stock now trades at roughly 22 times forward earnings, compared with about 67 times for rival Advanced Micro Devices, making Nvidia the cheaper of the two by that measure. Nvidia has roughly $1 trillion in confirmed orders for its Blackwell and Vera Rubin chips through 2027, and it expects hyperscaler AI spending to climb toward $3 trillion to $4 trillion a year by decade’s end. However, concerns persist about hyperscalers developing custom AI chips in-house and about reports that Nvidia is in talks to guarantee as much as $250 billion in data center lease payments for OpenAI, on top of up to $350 billion in GPU purchase financing, reviving worries over circular financing. Nvidia reports earnings on August 26, which could clarify whether demand remains strong and whether the sell-off created a buying opportunity.
Advanced Micro Devices Inc
NVIDIA Corporation
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