Summary
- The most likely scenario for Nvidia Corporation is to continue to trail the broader equity market.
- As the S&P 500 evolved, there is now a growing pool of potential high-growth technology investments which compete with NVDA.
- The stock’s earnings multiple has been gradually normalizing, and future multiple expansion appears highly unlikely.
- The AI-driven momentum and hyperscalers’ capex increases will remain supportive for NVDA in the short term, but the market is already looking past that.
David Tran/iStock Editorial via Getty Images
Being the major success story that it is, while also trading at extreme valuations in recent years, Nvidia Corporation (NVDA) tends to attract extreme opinions on both ends of the spectrum.
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