Nvidia valuation has fallen to about 24 times forward earnings before its August 26 results. That compares with roughly 21 times for the S&P 500.
The multiple has declined steadily since August 2024. Nvidia’s earnings growth has outpaced investors’ increases in the stock’s valuation.
JPMorgan analyst Harlan Sur said strong quarterly results have not consistently lifted Nvidia shares. Revenue guidance beat Wall Street estimates by an average of 4% during the previous four quarters, he wrote.
Sur said Nvidia must defend its leadership in AI computing to support a higher valuation. Alternative GPU, ASIC and XPU platforms continue to create competitive pressure. China could also influence future growth. Nvidia’s H200 GPUs have started reaching some Chinese customers.
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However, regulatory approvals and infrastructure limits restrict wider deployment. Wedbush analyst Matt Bryson therefore expects only a limited near-term revenue boost from China.
Nvidia reported fiscal 2027 first-quarter revenue of $81.62 billion, up 85% from a year earlier. Adjusted earnings per share reached $1.87.
Data Centre revenue totalled $75.2 billion, representing more than 92% of company sales. Nvidia also guided for about $91 billion in second-quarter revenue.
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The company based that forecast on zero Data Centre compute revenue from China. Nvidia is scheduled to report fiscal 2027 second-quarter earnings after the US market closes on Wednesday, August 26.
