The stock is actually getting cheaper as analysts raise earnings estimates. Nvidia now trades at less than 33 times projected profits, down from 35 three weeks ago. The Nasdaq 100 is priced at 27 times, and there are 30 companies in the 100-member index with higher valuations than Nvidia, including Starbucks Corp. and Netflix Inc.
For all of the handwringing about Nvidia Corp.’s sky-high market value pushing the stock into bubble territory, its revenue growth is keeping investors buying.
While the chipmaker’s earnings this week weren’t the blowout Wall Street was hoping to see, they did show that its sales are still climbing faster than most of the technology universe. Nvidia is expected to post revenue growth of at least 42% over the next four quarters, compared with an average of roughly 10% for the tech-heavy Nasdaq 100 Index, according to data compiled by Bloomberg Intelligence.
